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. Somewhat surprisingly, Ford then shifted gears and announced that it intended to restart vehicle production in India last September, but now, it seems as if those plans have been put on ice.
According to The Times of India, Ford is reportedly reconsidering the concept of restarting vehicle production in that country after it initially planned to reveal details of this move last month – which didn’t happen. A source now indicates that Ford is rethinking that move and plans to announce its final decision in the late summer. However, in a statement, a Ford spokesperson noted that the company remains “committed to utilizing the manufacturing capabilities in Chennai to serve global markets and are thankful to the Government of Tamil Nadu for its continued support as we advance our plans. Further details regarding the type of manufacturing, timelines and other specifics will be shared in due course and we have nothing additional to share at this time.”
Ford previously 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 would be exported to other markets. The automaker didn’t reveal any additional details regarding this move at that time – including what models it planned to build at the Chennai plant, though prior rumors suggested they could be EVs. Ford was also reportedly in line to receive incentives from the Indian government for doing precisely that, too.
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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