Ford expects to return to the Indian market. In a letter of intent to the Tamil Nadu government, the American automaker announced its intention to re-enter the country. This was after a meeting between the management of the American company and MK Stalin, Chief Minister of Tamil Nadu during his recent visit to the US.
Ford will focus on exports from India
In a surprise move, the American automaker will shut down operations in the country in September 2021. Ford owned and operated two manufacturing plants outside India – one near Chennai in Tamil Nadu and the other in Sanand in Gujarat.
Had a very engaging discussion with the team from @Ford Motors! Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world!@TRBRajaa @Guidance_TN @TNIndMin #InvestInTN #ThriveInTN #LeadWithTN #DravidianModel pic.twitter.com/J2SbFUs8vv
— M.K.Stalin (@mkstalin) September 11, 2024
The latter was sold to Tata Motors last year, which has now converted it into an electric vehicle (EV) plant, while the Chennai plant has ceased production after exports stop in 2022. Earlier this year, it was announced that Ford would return to India. and will begin production at its Chennai facility. The company has also posted numerous posts on various recruitment portals a few months back.
However, contrary to earlier reports, Ford is looking to resume manufacturing operations in Chennai only to meet export requirements.
In an official statement, Kay Hart, President International Market, Ford Motor Company, said, “We are grateful for the continued support of the Government of Tamil Nadu in exploring various options for the Chennai plant. This move aims to underline our continued commitment to India as we look to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.
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Earlier it was speculated that Ford would return to India with the new generation Endeavor (also known as Everest internationally) which has been spotted on several occasions. But now that seems like a distant future as the American brand is just trying to get its export operations off the ground.
When Ford left India, the company had less than a 2% share of the country’s passenger vehicle market when it halted production as it struggled to turn a profit for years. The company had an extensive model range including EcoSport, Figo, Freestyle, Aspire and Endeavour.