India: Tata Motors to buy Ford's manufacturing plant for $91 million

The acquisition of the Sanand plant will unlock a manufacturing capacity of 300,000 units per year, the company said

Read more...
Photo: Reuters

By Reuters

Published: Mon 8 Aug 2022, 9:35 AM

On Sunday, Tata Motors Ltd signed an agreement to buy Ford Motor's manufacturing plant (Sanand) in the western state of Gujarat for Rs7.26 billion ($91.5 million).

The agreement between the Indian automaker's subsidiary Tata Passenger Electric Mobility Ltd (TPEML) and Ford India Pvt Ltd (FIPL) covers land, assets and all eligible employees.

"With our manufacturing capacity nearing saturation, this acquisition is timely, and a win-win for all stakeholders," Tata Motors said in a statement.

Advertising
Advertising

The Jaguar Land Rover parent said the acquisition of the Sanand plant will unlock a manufacturing capacity of 300,000 units per year, that could increase to 420,000.

Ford had less than 2 per cent of the Indian passenger vehicle market when it stopped production in the country last year, having struggled for more than two decades to generate profits.

ALSO READ:

  • Asia
Reuters

Published: Mon 8 Aug 2022, 9:35 AM

Recommended for you