On Sunday, Tata Motors Ltd. agreed to pay 7.26 billion rupees ($91.5 million) for Ford Motor Company’s manufacturing facility in the western state of Gujarat.
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 struggled to make money for more than 20 years and had fewer than 2% of the Indian passenger vehicle market when it halted manufacturing there last year.
