Take Over Indian automaker Tata Motors has agreed to buy a Ford manufacturing plant in the western state of Gujarat. It will cost 7.26bn rupees ($91.5m). Tata wants to boost […]
Indian automaker Tata Motors has agreed to buy a Ford manufacturing plant in the western state of Gujarat. It will cost 7.26bn rupees ($91.5m). Tata wants to boost its car production to meet demand and that is why it decided to buy the plant. The deal between Tata’s electric vehicle subsidiary and Ford’s Indian unit covers land, machinery and all “eligible employees”.
Ford stopped production in India last year after struggling for more than two decades to generate profits there. Our media has already reported this halt as well. “With our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders,” Tata Motors said in a statement.
Tata Motors is the parent company of the UK’s Jaguar Land Rover. The Indian company will add its annual production at the Sanand plant. The deal will initially give it new capacity of 300,000 vehicles a year, which could be increased to 420,000.
Read more of this content when you subscribe today.
