Tata Motors Inks MoU With Gujarat Govt To Acquire Ford India’s Sanand Plant, Stocks Gain Over 3%

Leading Indian multinational automotive manufacturing company Tata Motors has inked a Memorandum of Understanding (MoU) with state government of Gujarat in an effort to acquire Ford India's Sanand vehicle manufacturing facility that includes Land and Buildings inside the vehicle manufacturing plant, according to a regulatory filing on May 30. The agreement specifies a transfer of Ford India's machinery and transfer of all eligible staff.

According to report, Tata Motors' subsidiary Tata Passenger Electric Mobility Limited (TPEML) is expected to invest in the new equipment and machinery at the plant to prepare the unit effectively for the prodsuction of its vehicles.

The deal is expected to help Tata Motors boost the enhancement of its Personal Vehicle and Electric Vehicle manufacturing capacity.

According to a report in MoneyControl, while making the announcement of the MoU, Dr Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said, "This MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition. This effort reinforces Gujarat's image as a progressive, investment-friendly state and its resolve to further strengthen the state as a leading automotive hub in the country."

How markets reacted to the news?
Soon after the announcement, the stock of Tata Motors gained over 3.21% and was trading at 443.25 share apiece in morning trade on NSE. Meanwhile, the stock of the company was trading in the higher trajectory with a gain of 3.12% on BSE at 443.30 share apiece.