After reportedly losing billions in the world’s third-largest automotive market, Ford announced that it would be ending its manufacturing operations in India back in 2021, and proceeded to put both the Sanand Assembly plant and Chennai Assembly plant up for sale. It wound up finding a buyer for the Sanand plant in Tata Motors shortly thereafter, but struggled to find a taker for the Chennai plant. However, rumors pertaining to Ford’s potential return to India have swirled for some time now – recently intensifying – and now, the automaker has announced that it will indeed restart production in that country.
Ford has submitted a Letter of Intent (LOI) to the Government of Tamil Nadu, confirming its intention to utilize the shuttered Chennai plant to primarily build vehicles that will be exported to other markets. This announcement comes just days after the automaker met with Chief Minister Chief Minister of the Government of Tamil Nadu, though at least for now, Ford isn’t revealing any additional details regarding this move – including what models it plans to build at the Chennai plant, though prior rumors suggested they could be EVs.
“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” said Kay Hart, President, Ford International Markets Group. “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.”
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.
No Comments yet