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The deal comes as Tata Motors continues to ramp up production of vehicles to meet market demand. The deal is between Tata Motors' electric vehicle company and Ford's Indian business. and is an agreement that covers all land, machinery and “full-time employees”
Ford has stopped making cars in India since 2021 after more than two decades of trying to turn a profit in the country.
“With production capacity nearing saturation Therefore, this acquisition is timely. And it's an agreement that is worthwhile for both parties. for all stakeholders,” Tata Motors said in a statement.
along with the information that Initially, the annual production at the Sanand plant would bring about 300,000 new vehicles a year, which could then increase to 420,000 vehicles.
Steve Armstrong, Ford's transition officer, said: This announcement marks a significant step in Ford's efforts to restructure its business in India.
In September of last year Ford has announced that it may close a car plant in India. It was part of a move in the company that would be worth about $2 billion, which at the time Ford said around 4,000 workers would be affected by the decision.
Over the past 10 years, Ford's operations in India have lost more than $2 billion.
While the massive downgrade of its operations in India is in stark contrast to the company's previous ambitions. Ford has been trying to make India one of its biggest markets.