Ford Coming Back to India? Letter of Intent Submitted to Tamil Nadu Government Confirms Intention
In an official statement, Ford announced that it had submitted a letter of intent to the Tamil Nadu government, affirming its plan to use the Chennai plant for export manufacturing.
By Reetika Bhatt
Ford has announced plans to restart manufacturing operations at its Chennai plant in Tamil Nadu, marking a significant step in the company’s strategy to regain momentum in the Indian automotive market. With this, the facility, which had halted production in 2021, may once again become a hub for export vehicle manufacturing as Ford looks to meet rising demand and leverage its infrastructure in the region. This move is expected to create new employment opportunities and stimulate growth in the local economy. While the company has not disclosed any specifics about potentially re-entering the Indian market with sales operations, it may consider taking a positive step in that direction, given that India is currently the third-largest automobile market globally.
Ford to Begin Vehicle Manufacturing in India
In an official statement, Ford announced that it had submitted a letter of intent to the Tamil Nadu government, affirming its plan to use the Chennai plant for export manufacturing. This development came after a meeting between Ford's officials and Tamil Nadu CM M.K. Stalin during his visit to the US. The manufacturer stated that this strategic initiative will involve repurposing the Chennai facility to concentrate on manufacturing for export to international markets, aligning with its Ford+ growth strategy.
Kay Hart, President, of Ford International Markets Group remarked, 'We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant. 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.'
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Ford began its operations in India in 1995, establishing integrated manufacturing plants in Chennai, Tamil Nadu, and Sanand, Gujarat. The Chennai facility had an annual production capacity of 2 lakh vehicles, while the Sanand plant could produce 2.4 lakh vehicles and 2.7 lakh engines annually. The company produced SUVs like the EcoSport and Endeavour at its Chennai plant, while the Aspire sedan and hatchbacks such as the Figo and Freestyle were manufactured at the Sanand facility. In January last year, the company sold the vehicle manufacturing unit of the Sanand plant to Tata Motors. However, Ford continues to produce engines at the Sanand plant and maintains its service operations in India.
The company currently employs 12,000 people in its global business operations in Tamil Nadu, with plans to increase the workforce by 2,500-3,000 over the next three years. Along with its engine manufacturing operations in Sanand, India is home to Ford's second-largest salaried workforce globally.
