BENGALURU: Tata Motors Ltd said on Monday 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% 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.

Indian shares track Asia stocks to rise nearly 1%; Tata Motors jumps

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.