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Ford Motors has recently announced that they have submitted the Letter of Intent (LOI) to Tamil Nadu Government in India with intent to restart its manufacturing operations in their Chennai Plant to produce and export cars into the global markets. This officially states Ford Re-Entry Confirmed in India. The management later had a meeting with the Chief Minister of Tamil Nadu during his visit in the United States.
Ford Re-Entry Confirmed in India as Export Hub
“We are grateful for the ongoing support from the TN Government as we explored different options for the Chennai plant,” said Kay Hart, President, Ford International Markets Group. Kay Hart has also visited India earlier in march to assess the possible conditions to restart its operations. The company has not disclosed the products that will be manufactured in India and will be announced later. The company does not have any immediate plans for the domestic market.
This planned and strategic movement by world largest automaker has ignited the sparks in the Automotive Industry in India. The main focus currently is to make use of the Chennai plant and produce engines and cars for global exports which is part of company Ford Growth+ plan by CEO Jim Farley. Due to the cost effective labour in India and having its existing setup in India, its a planned decision to reduce the labour cost and increase profitability.
The announcement also confirms Ford’s commitment to India is important for its Global operations. Currently Ford employs 12,000 employees in Tamil Nadu for its Global Business Operations and the company plans to increase the workforce by approx. 3,000 employees within the next 2 to 3 years tenure. The automaker also continues to support one million of it customers providing comprehensive customer support
Government Efforts in Plant Operations
Ford had two plants in India, out of which one was sold to Tata Motors in 2023 and the other remained closed. The Tamil Nadu Government efforts to utilize the plant started increased in June 2023 when Indian automakers showed interest in acquiring the plant for their operations. In October to November 2023 there were multiple discussions between with the Minister of TN and Ford management regarding the possible use cases of the plant & land acquisitions but did not come up to any decision.
In July 2024, Dr. T.R.B Raja visited the Ford Headquarters and factory in Michigan to meet the leadership team and highlighted the benefits of resuming the operations in TN plant due to the rapid change in the Indian Automotive landscape and Companies like Vinfast & JLR already considering TN state to setup their new plants. He also shared the importance of increase in demand for EV’s in India and with transformation in the electric vehicles infrastructure post 2021, after the company exited India. Dr. T.R.B Raja mentioned the importance of Maraimalai Nagar Facility.
The final opportunity came when the Chief Minister of Tamil Nadu recently visited the US and personally ensured full cooperation to the Ford management team of their return and to make sure the smooth operations and integration into the Automotive landscape in TN state.
Automaker Timeline & History in India
| Year 1995 | Ford En-enters passenger car market in JV with Mahindra & Mahindra |
| Year 1998 | Increased stake to 72% in Mahindra Ford India (JV) and renamed it as Ford India |
| Year 2000 | Introduced known brand models like Fiesta, Fusion & Ecosport |
| Year 2010 | Invested in new Engine Plant in Chennai |
| Year 2014 | Invested and opens new plant in Sanand |
| Year 2019 | Announces new Joint-Venture with Mahindra & Mahindra |
| Year 2020 | Ford & Mahindra terminate JV due to COVID-19 Crises |
| Year 2021 | Announced Exit from Passenger Vehicle Car market in India |
| Year 2024 | Announced Re-Entry in India as Export base for Global Market |
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