Who acquired Ford in India?
The Adani Group emerged as the buyer of Ford Motor Company's Sanand, Gujarat manufacturing facility as Ford winds down its local production footprint in India. The sale is the clearest sign yet of Ford’s exit from manufacturing in the country, with the company continuing to explore options for an ongoing presence through imports and service. This article explains who acquired Ford in India, what assets were involved, and what the move means for the Indian auto sector.
Background: Ford's presence in India
Ford entered India in the mid-1990s and built two main manufacturing sites to serve the domestic market and for regional exports. Historically, Ford operated plants in Chennai (Tamil Nadu) and Sanand (Gujarat), producing models such as the Fiesta, EcoSport, and other vehicles for local sales and export. In the late 2010s, Ford announced a strategic restructuring that included a shift away from manufacturing in India, signaling a broader retreat from the country’s production footprint while keeping a limited import and service presence.
Acquisition details
Key elements of the deal centered on Ford’s Sanand manufacturing facility in Gujarat, which became the focal point of Ford’s withdrawal from local production. The following list captures the elements that have been reported as part of the acquisition.
- The Sanand manufacturing plant and its related assets in Gujarat
- Associated equipment, tooling, and inventory tied to the Sanand site
- Transition-related considerations for employees and ongoing operations during the handover
- Any contractual arrangements linked to the site’s production activities (subject to regulatory approvals)
The deal was framed as a strategic reallocation of assets in the Indian market: Adani Group’s purchase of the Sanand plant is intended to create a local manufacturing foothold that can serve regional demand and potential exports, while Ford pivots toward an importer/distributor model for India and focuses on core markets outside of full-scale domestic manufacturing.
Impact and implications
The acquisition has notable implications for Ford, the Adani Group, and the broader Indian auto ecosystem. The following list outlines the primary consequences as understood from public reporting and industry analysis.
- Adani Group gains a manufacturing footprint in western India, with potential for localized production and export opportunities
- Ford reduces its Indian manufacturing presence, moving toward importing vehicles and aftermarket services rather than local assembly
- Local suppliers, logistics networks, and workforce transitions face adjustment as ownership changes occur
- The deal contributes to consolidation in India’s auto-manufacturing landscape and may influence future investment strategies in the sector
As the transition unfolds, stakeholders are watching how the new ownership will leverage the plant, whether additional jobs will be created or reallocated, and how the facility’s output will align with India’s evolving demand for vehicles, including potential exports to neighboring markets.
Current status and what’s next
With the Sanand site under new ownership, the focus shifts to execution: integrating the facility into Adani’s industrial portfolio, aligning production plans with demand, and navigating regulatory and workforce considerations. Ford’s Indian operations continue to evolve, emphasizing its broader global strategy of prioritizing non-manufacturing activities in markets where it has scaled down local production.
Summary
In short, the Adani Group acquired Ford India’s Sanand plant as part of Ford’s broader exit from manufacturing in India. This deal marks a significant shift in the Indian auto manufacturing landscape, signaling the end of Ford’s traditional two-plant footprint in the country and introducing a new manufacturing entrant through Adani. The long-term impact will hinge on how the new ownership develops the site, secures local supply chains, and positions itself in a competitive market shaped by evolving consumer demand and policy priorities.
Is JLR 100% owned by Tata?
Yes, Tata Motors owns 100% of Jaguar Land Rover (JLR), having acquired the company in 2008 from Ford. Tata Motors is itself a part of the larger Tata Group, with Tata Sons being the largest shareholder in Tata Motors.
- Acquisition: Tata Motors purchased Jaguar and Land Rover from Ford in June 2008 for $2.3 billion.
- Subsidiary: JLR operates as a wholly-owned subsidiary of Tata Motors.
- Parent company: The larger Tata Group is a multinational conglomerate, and Tata Motors is one of its key companies.
- Ownership structure: Tata Sons is the principal holding company and the largest shareholder of Tata Motors, giving it significant influence over the company.
Why did Ratan Tata buy Ford?
Eventually, Tata decided to sell the passenger car business. During a trip to India, Ford Motors of US had shown an interest in buying the car division of Tata to get a stronger hold in the Indian market. Ratan Tata decided to go to the Ford headquarters in Detroit to finalize the deal.
What did Tata buy from Ford?
On a June morning in 2008, at JLR's Gaydon office, a simple handshake marked the end of one chapter and the start of another. Struggling with the global financial crisis, Ford officially handed over two of Britain's most famous car brands, Jaguar and Land Rover, to Tata Motors.
Who bought the Ford company in India?
In May 2022, Tata Motors announced that it has signed an agreement to acquire a plant. In September 2021, the company announced it would cease production in India, citing growing losses and no sustainable path to profitability in the territory.
