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

(Reuters) – Tata Motors Ltd signed an settlement on Sunday to purchase Ford Motor’s manufacturing plant within the western state of Gujarat for 7.26 billion rupees ($91.5 million).

The settlement between the Indian automaker’s subsidiary Tata Passenger Electrical Mobility Ltd (TPEML) and Ford India Pvt Ltd (FIPL) covers land, property and all eligible staff.

“With our manufacturing capability nearing saturation, this acquisition is well timed and a win-win for all stakeholders,” Tata Motors mentioned in a press release.

The Jaguar Land Rover dad or mum mentioned the acquisition of the Sanand plant will unlock a producing capability of 300,000 items per 12 months that might improve to 420,000.

Ford had lower than 2% of the Indian passenger automobile market when it stopped manufacturing within the nation final 12 months, having struggled for greater than 20 years to generate income.

($1 = 79.3600 Indian rupees)

(Reporting by Aditi Shah in New Delhi and Jahnavi Nidumolu in Bengaluru; modifying by John Stonestreet)