Back in September 2021, Ford announced that it would be ending its manufacturing operations in India after years of losses, meaning that both the Sanand Assembly plant and Chennai Assembly plant would be closing down as well. However, the automaker has had a hard time exiting that market, and rumors pertaining to its possible return have swirled for some time now – though it isn’t the only automaker eyeing India, either. Now, we have more fuel to add to that proverbial fire.
According to a new report from Reuters, Ford recently engaged in talks with the Tamil Nadu state in India regarding the possibility that the automaker may once again build vehicles there and export them to other markets. Though India is the third-largest auto market on the planet, Ford and many of its rivals have struggled to compete there as it’s currently dominated by Asian brands. Previously, Ford sold its Sanand plant to Tata Motors, but wound up shuttering the Chennai plant after failing to find a suitor.
“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. In a statement, Ford added that it “continues to explore suitable alternatives for its plant in Chennai,” somewhat confirming this particular report.
Prior to ending its manufacturing operations in India, Ford built and sold the EcoSport and Endeavor in that market, though it held a mere two percent share of the passenger vehicle market overall. Over the course of the decade prior to exiting India, Ford reportedly lost $2 billion there, though it did try to save its business by forming a joint-venture with Mahindra & Mahindra. Ultimately, that deal fell through, though Ford continues to build engines for the Ranger at a factory in western India.
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