BENGALURU (Reuters) -Indian automaker Tata Motors As it seeks to increase its production of electric cars, (NYSE.) Ltd signed an agreement to possibly buy a Ford Motor (NYSE.) facility in Gujarat.

Jaguar Land Rover’s owner is already the dominant player in India’s emerging electric vehicle market. The government offers incentives worth billions to encourage growth.

Monday’s memorandum of agreement covers land, assets, and eligible employees at Sanand. Financial details were not revealed.

Tata indicated that the company would make investments in the machinery and equipment of the plant using its electric mobility unit. The facility will be able to produce 300,000.00 units annually after completion of the works. It is possible to increase the capacity by more than 400,000.

Shailesh Chaudra, Tata Passenger Electric Mobility Ltd. managing director said that the rising preference of Tata Motors customers for passenger and electric cars has resulted in a multi-fold increase… this transaction could support increased capacity.”

Tata, which last year received $1 billion from TPG private equity firm for its electric vehicle business, competes with Mahindra or Mahindra.

American automaker Ford made the decision to end production of passenger cars in India last year. It had less than 2 percent market share and has been struggling to generate profits for over two decades.

Ford earlier this month stated that they were looking at options for the two Indian factories it has. It also canceled plans for India to manufacture electric vehicles for export.