Ford has announced plans to reopen a manufacturing facility in Tamil Nadu, India, focusing on exports for global markets. This move comes three years after the automaker ceased production in India due to challenges in gaining market share.
Ford Motor said on Friday that it intends to reopen an export-oriented manufacturing facility in Tamil Nadu, India, perhaps re-entering a market that it left three years prior. Ford said it has submitted a letter of intent to the state's government, two days after Tamil Nadu's chief minister said that the two were in talks to restart manufacturing in the state for exports.
Ford ceased manufacturing automobiles in India for local use in 2021 following difficulties in increasing production levels, and it terminated exports in 2022, so leaving the world's third-largest automobile market—which is primarily controlled by Asian competitors. Ford said in a statement, "The facility will see a re-purpose to focus on manufacturing for export to global markets."
Ford and the state government have reportedly been in negotiations for more than six months, and the business is almost ready to make a decision on its intentions for India and the future of the Maraimalainagar complex. Ford Motor Company has been urged by the government of Tamil Nadu to extend its three-decade partnership by resuming operations at this site close to Chennai.
Stalin, who is spending two weeks in the US, requested that the company build its global technology hub in Chennai at the discussion with corporate leaders. He met senior executives in Chicago, including Dr. Sripath Pat, Ford India's Director of Government Affairs, Vice President Matthew Kotlowski, and Kay Hart, President of Ford's International Market Group.
Later, Stalin in his tweet on X said, 'Had a very engaging discussion with the team from Ford Motors! Explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu to again Make in Tamil Nadu for the world!'
Had a very engaging discussion with the team from Motors! Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world! pic.twitter.com/J2SbFUs8vv
— M.K.Stalin (@mkstalin)The automaker stated that more information, including the vehicles it intends to produce at the site, will be released at a later time. At its Chennai, Tamil Nadu facility, it produced engines and automobiles until it closed.