On Sunday, Tata Motors Ltd. Agreed to pay $91.5 million for Ford Motor Company’s manufacturing facility in Gujarat, a western state (Rs 726 crore).
The deal between Ford India Pvt Ltd (FIPL) and Tata Passenger Electric Mobility Ltd (TPEML), a division of the Indian manufacturer, covers all relevant workers as well as land and assets.
Tata Motors said in a statement that “with our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all parties.”
The company that owns Jaguar Land Rover claimed that by purchasing the Sanand facility, a manufacturing capacity of 300,000 units per year that might rise to 420,000 will be unlocked.
Ford battled for more than two decades to turn a profit, and when it discontinued manufacturing in India last year, it had fewer than 2% of the country’s passenger vehicle market.