Tata Motors to Purchase Ford Car Plant in India

Automobile Business

Tata Motors, Indian automobile company, has agreed to purchase a Ford manufacturing plant in the western state of Gujarat for 91.5 million dollars. The deal comes as Tata Motors moves to boost its car production to meet increasing demand.

The deal between the electric vehicle subsidiary of Tata and the Indian unit of the US automobile company covers land, machinery, and all the eligible employees. Ford will stop production in India in 2021 after struggling for over two decades to generate profits in the country.

Tata Motors said with their manufacturing capacity reaching saturation, this acquisition is timely, and a win-win situation for all the stakeholders of the company. The parent company of Jaguar Land Rover (JLR) of the United Kingdom added that annual production will primarily give it a new capacity of 300,000 vehicles a year, which can possibly be increased to 420,000 vehicles.

Steve Armstrong, transformation officer of Ford, said this announcement marks an important step forward in the efforts of Ford to restructure its Indian business. In September 2021, Ford said it will close its Indian car factories as a part of a move that will cost it around 2 billion dollars. Ford also said that around 4,000 workers will also be affected by the decision of the company.


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