Ford is eyeing a comeback to the Indian market. In a letter of intent to the Government of Tamil Nadu, the American carmaker has announced its intention to re-enter the country. This comes after a meeting between the American company’s leadership and MK Stalin, the Chief Minister of Tamil Nadu during the latter’s recent visit to the USA.
Stalin also posted about this visit on his social media handle. “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,” M.K. Stalin said in a post on X.
Ford to focus on exports from India
In a surprising move, the American carmaker quit operation in the country back in September 2021. Ford owned and operated two manufacturing plants out of India— one near Chennai in Tamil Nadu and the other in Sanand, Gujarat.
The latter was sold to Tata Motors last year who has now converted it into a dedicated electric vehicle (EV) manufacturing plant while the Chennai-based production facility went out of production after halting exports in 2022. Earlier this year, it was reported that Ford will be returning to India and kickstart production at its Chennai plant. The company had also listed out numerous posts on various hiring portals a few months ago.
However, contrary to earlier reports, Ford is looking to resume manufacturing operations in Chennai only to cater to export demands. In an official statement, Kay Hart, President, International Market, Ford Motor Company said, “We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant. This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets”.
It was earlier presumed that Ford will be returning to India with the new-gen Endeavour (also known as Everest internationally) which had been spotted on a few occasions. However, it now seems a distant future as the American brand is only looking to kick start its export operations.
When Ford quit India, the company had less than a 2% share of the country’s passenger vehicle market when it stopped production, having struggled for years to turn a profit. The company had an extensive line of models including EcoSport, Figo, Freestyle, Aspire, and Endeavour.
(With inputs from Agencies)
