Tata to buy Ford manufacturing plant in India for $91 million

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.

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