Tata Motors signs agreement for potential purchase of Ford's Gujarat plant.

Tata Motors Ltd. said recently its electric mobility unit has signed an agreement to potentially acquire Ford Motor's Sanand vehicle manufacturing facility in Gujarat.

The US automaker last year stopped production in India, where it had a less than 2 per cent share of the passenger vehicle market and had struggled to turn a profit for more than two decades.

The company said earlier this month it was seeking options for its two factories in the country while shelving plans to make electric vehicles in India for exports.

The memorandum of understanding between Tata Passenger Electric Mobility Ltd, Ford India Private Ltd and the government of Gujarat includes the land, assets and all eligible employees working at the Sanand facility.

Ford India will operate its powertrain manufacturing facilities by leasing back land and buildings of the powertrain unit from the Tata Motors unit, the company said.

HBL