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Tata Motors signed an agreement on Sunday to buy Ford Motor’s manufacturing plant in Gujarat, India for 7.26 billion rupees ($91.5 million).
The agreement between the Indian automaker’s subsidiary Tata Passenger Electric Mobility and Ford India Pvt 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.
Tata said the acquisition of the Sanand plant will unlock a manufacturing capacity of 300,000 units per year that could boost to 420,000.
Ford had less than 2% of the Indian passenger vehicle market when it halted production in the country in 2021, having struggled for over two decades to grab a larger market share.
