Tata Motors Agrees to Buy Ford’s Gujarat Plant for $92 Million

Tata Motors Ltd. agreed to acquire Ford Motor Company’s plant in the western Indian state of Gujarat to bolster its manufacturing capacity, according to Bloomberg.

The Indian automaker will pay 7.26 billion rupees ($92 million) for the transaction, which includes land and buildings as well as the vehicle manufacturing plant in Sanand, Gujarat, and its machinery and equipment, according to a statement by Tata Motors.

“With our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders,” Tata Motors said in the statement. “It will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.”

Ford announced last year it was shuttering its factories in India, retreating from a country that management once saw becoming one of its three biggest markets. Prior to the closures, the US automaker’s India unit had racked up more than $2 billion in losses during the past decade.