The Chennai facility will be repurposed to concentrate on manufacturing for global markets. The ‘Make in Chennai’ plans emerge after Chief Minister MK Stallin met Ford Leadership during former’s United States visit.
Read More: Comeback carmaker? Indian market is now too attractive to ignore“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.”
Further information about the type of manufacturing and other details will be disclosed in due course, said press release.
“Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide,” said Ford in the statement.
Why is Ford planning a comeback?
After announcing the exit in September of 2021, Ford did apply to participate in the government’s PLI scheme but later dropped its plans to make EVs in India for the global markets. In fact, the talk about Ford’s re-entry has never died since its exit. Last year, Ford unexpectedly abandoned plans to sell its Tamil Nadu plant (it had sold its Gujarat plant to Tata), its sole remaining factory site in the country, after finalising a deal with the Sajjan Jindal-led JSW Group. Ever since there has been speculation about its return to India, especially when Indian market has matured quickly and foreign brands such as Kia and MG Motors have become successful in a short period.
With China’s and Europe’s markets not being as significant, India becomes a focus for growth. “Feeling is that it is not right to stay out of India, especially as the brand is still well-known to potential buyers,” a source had told TOI. India’s new EV policy should be a big pull for Ford.
