Ford plans to restart Chennai plant with focus on exports
This story was originally published at 18:37 IST on 13 September 2024
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MUMBAI – Ford today announced that it has submitted a letter of intent to the Tamil Nadu government, confirming its intention to use the Chennai plant for manufacturing for export. The announcement follows a meeting between the Ford leadership and the chief minister of Tamil Nadu, as part of his visit to the US.
This strategic move will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company's ambitious Ford+ growth plan, the American automaker said in a press release. Further information about the type of manufacturing and other details will be disclosed in due course.
"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."
The announcement reaffirms Ford's commitment to India as a critical market for the company's global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.
Ford exited India in 2021, after accumulating losses of $2 bln, and cornering a market share of just 2% after spending 25 years in the Indian market. In 2023, following the departure announcement, Ford sold its plant in Gujarat to Tata Motors. Subsequently, it was looking to sell its sole factory in Tamil Nadu to the Sajjan Jindal-led JSW Group, which announced its entry into the automotive sector in a joint venture with SAIC for MG Motor India. However, Ford abandoned its plans and since then, there has been speculation about its return to India. End
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Reported by Darshan Nakhwa
Edited by Avishek Dutta
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