Ford is selling one of its plants in India to Jataar Land Rover owner Tata Motors, which will use it to produce electric cars in the country.
The Sanand plant is located in the western state of Gujarat and has recently hit the market as Ford announces it will stop producing cars in India, with a market share of less than 2%. Ford struggled for more than two decades to make a profit in the market before it shut down two months ago.
Accordingly ReutersThe sale of the plant includes the land on which it is located, all assets, as well as workers. The sale price was not announced, however The Economic Times It is estimated that it may be around 100-150 million dollars. In addition to government incentives, Tata also raised $ 1 billion for the EV business from a private firm, TPG.
Read: Tata plans to release its own semiconductors and batteries
“Consumer preferences for Tata Motors’ passenger and electric vehicles have grown exponentially, and this potential transaction will support capacity expansion,” said Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility.
Tata Motors dominates the electric car market in India and plans to further develop it by providing billions of dollars in incentives from the government. After the installation of new equipment to increase EV production, production capacity is expected to reach 300,000 units per year, and in the near future the capacity will increase to 400,000.
The agreement does not include Ford’s second plant in the country, which produces engines for export markets.