Ford Motor Company is planning to restart a manufacturing plant in Tamil Nadu, India, focusing on exports, the company announced on Friday. This move marks a potential return to the Indian market, which Ford exited three years ago. The company has submitted a letter of intent to the Tamil Nadu government, signaling its interest in resuming manufacturing operations in the state.
The announcement follows a statement from Tamil Nadu's Chief Minister, who mentioned that discussions were ongoing between the state government and Ford to restart production in the region. The proposed revival of the plant will shift its focus primarily to manufacturing vehicles for export to global markets. Ford has not yet disclosed which car models will be produced at the facility or other specific details about its plans.
Ford ceased manufacturing vehicles for the Indian domestic market in 2021 after struggling to increase sales volumes. By 2022, the company had also stopped exporting cars from India, effectively exiting the world's third-largest car market, which is largely dominated by Asian automakers. Prior to this exit, Ford had been producing cars and engines at its plant in Chennai, Tamil Nadu.
“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 decision to repurpose the Chennai plant for exports suggests that Ford sees potential in leveraging India's manufacturing capabilities for its global operations, even if the domestic market has proved challenging in the past. Further information about the company’s plans and the specific models to be manufactured will be provided at a later date.
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