![\"\"](\"http:\/\/www.ghanamma.com\/wp-content\/uploads\/2022\/08\/Tata-Motors-696x392.jpg\" "\\"Tata")
Indian automaker Tata Motors has agreed to buy a Ford manufacturing plant in the western state of Gujarat for 7.26bn rupees ($91.5m).<\/p>\n
The deal comes as Tata moves to boost its car production to meet demand.<\/p>\n
The deal between Tata\u2019s electric vehicle subsidiary and the US car maker\u2019s Indian unit covers land, machinery and all \u201celigible employees\u201d.<\/p>\n
READ MORE:<\/strong><\/p>\n <\/p>\n Ford stopped production in India last year after struggling for more than two decades to generate profits there.<\/p>\n \u201cWith our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders,\u201d Tata Motors said in a statement.<\/p>\n The parent company of the UK\u2019s Jaguar Land Rover added that annual production at the Sanand plant will initially give it new capacity of 300,000 vehicles a year, which could be increased to 420,000.<\/p>\n The announcement marks an important step forward in Ford\u2019s efforts to restructure its Indian business, Ford transformation officer Steve Armstrong said.<\/p>\n In September last year, Ford said it would close its Indian car factories as part of a move that would cost it around $2bn.<\/p>\n At the time, the US car maker said that about 4,000 workers would be affected by the decision.<\/p>\n Ford\u2019s operations in India had seen losses of $2bn in the previous ten year.<\/p>\n The major scaling back in its Indian operations was in stark contrast with the company\u2019s previous ambition to make the country one of its biggest markets.<\/p>\n <\/p>\n