Tata Motors to buy Ford India manufacturing plant for $91m

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Tata Motors logos are pictured outside their flagship showroom in Mumbai May 28, 2013. Picture taken May 28, 2013. REUTERS/Vivek Prakash

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Aug 8 (Reuters) – Tata Motors Ltd (TAMO.NS) on Sunday signed a deal to buy Ford Motor’s manufacturing plant in the western state of Gujarat for 7.26 billion rupees ($91.5 million ).

The agreement between Indian automaker subsidiary Tata Passenger Electric Mobility Ltd (TPEML) and Ford India Pvt Ltd (FIPL) covers land, assets and all eligible employees.

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

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Jaguar Land Rover’s parent company said the acquisition of the Sanand plant would unlock manufacturing capacity of 300,000 units a year which could grow to 420,000.

Ford held less than 2% of India’s passenger vehicle market when it halted production in the country last year, after struggling for more than two decades to turn a profit. Read more

($1 = 79.3600 Indian rupees)

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Reporting by Aditi Shah in New Delhi and Jahnavi Nidumolu in Bengaluru; edited by John Stonestreet

Our standards: The Thomson Reuters Trust Principles.

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