India based automotive manufacturing company Tata Motors Ltd. (NSE: TAMO) is eyeing to acquire a production facility in India owned by American car maker Ford Motor Co. (F). Tata has already signed an agreement to potentially acquire the manufacturing facility in the western state of Gujarat.
Tata is aiming to purchase the facility in a move to boost its production of electric vehicles. The government of India has been offering car manufacturers in the country incentives to produce electric cars as a way of growing the electric vehicle market in the country.
The financial details of the deal were not disclosed however, Tata said the memorandum of understanding covers the land assets and all eligible employees working at the Sanand facility.
Tata says it will be investing new machinery and equipment at the facility via its electric mobility unit it further expects the facility to have an annual production capacity of 300,000 units after its completion.
This development comes after Ford resolved to halt production in India last year where for decades now the company has been struggling to break even.