Tata Motors to buy Ford India plant

TATA Motors is set to buy a Ford manufacturing unit in the western Indian state of Gujarat for $91m.

The deal comes as the Indian carmaker plans to boost its vehicle-production capacity to meet rising demand. Tata saw a massive jump in its car sales in the month of July - selling 47,505 units which is a 57 per cent rise from that recorded in July 2021.

The deal between Tata's electric vehicle subsidiary Tata Passenger Electric Mobility Limited and Ford India Private Limited, the US car maker's Indian unit covers land, machinery and all ‘eligible employees'.

Ford halted its production in India in 2021 after struggling to generate profits in the South Asian nation for more than two decades.

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