Tata Motors Ltd said on Monday that its electric mobility unit has agreed to buy Ford Motor Company’s Sanand vehicle production site in Gujarat.
The owner of Jaguar Land Rover already has a stranglehold on India’s nascent electric car sector, which the government is attempting to expand by providing firms with billions of dollars in incentives.
Last year, the American carmaker halted production in India, where it had a less than 2% market share and had failed to generate a profit for more than two decades.
The business announced earlier this month that it was looking for alternatives for its two plants in India, as well as abandoning ambitions to produce electric vehicles for export.
The land, assets, and all eligible personnel working at the Sanand facility are included in the agreement of understanding between Tata Passenger Electric Mobility Ltd, Ford India Private Ltd, and the Gujarat government.
The land, assets, and all qualified personnel working at the Sanand complex are all covered by the memorandum of understanding published on Monday. The agreement’s financial terms were not made public.
Tata said its electric mobility unit would invest in new gear and equipment at the factory, which it hopes to have a manufacturing capacity of 300,000 units per year after the work is completed. It is possible to expand the capacity to over 400,000 units.
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