Ford Will Resume Manufacturing In India, But Only For Exports


Rohit Kulkarni

Rohit Kulkarni

Sep 18, 2024


Ford Motor Company, which shut its shop in India in August 2022, is now re-establishing its presence in India by resuming operations at its Chennai facility.

Ford Will Resume Manufacturing In India, But Only For Exports

This decision comes in alignment with the company’s “Ford+ Growth Plan” which focuses on the electric vehicles (EVs) and targeting exports to Southeast Asia.

Ford to Revive Chennai Plant as Part of New Strategy

The Maraimalai Nagar plant in Chennai, which was close 2 years ago, is now set to revive and also play a pivotal role in the renewed strategy of the company. This news comes just after the recent visit of Tamil Nadu’s Chief Minister M.K. Stalin to Ford’s headquarters in Dearborn, Michigan during which the government emphasized the state’s growing EV ecosystem, highlighting by the presence of companies like Vinfast and Tata JLR setting up new plants.

As per the president of Ford’s International Markets Group, Kay Hart, the company had submitted a letter of intent to the state government of Tamil Nadu over the use of Chennai plant for manufacturing vehicles for export.

This decision is also in line with the global brands who have re-entered the Indian market via strategic partnerships. These includes the likes of Shein and Carrefour.

With interest from several automotive investors including Ola Electric and Hyundai Motor India, the government had been actively seeking new users or buyers for the factory. Talks with Ford re-intensified in mid-2023 post which Ford committed to reactivating the plant.

Tamil Nadu’s Industries Minister TRB Rajaa and Chief Minister Stalin both assured full government support to facilitate Ford’s reintegration.

Ford Revived Plans, Past Losses and Global Strategy

With an annual capacity of 200,000 vehicles and 340,000 engines, the 350 acres of Chennai plant benefits from its strategic location near Chennai and Ennore ports.

Previously, the company had burned fingers as well as $2 billion over the period of 10 years in India, all of this with less than 2% market share. However, the tables are turned and with new vigour Ford intends to re-enter the Indian market and leverage Tamil Nadu’s manufacturing strengths to enter new global markets.

When Ford was operation, it supported many Indian customers and employed large workforce in the region. When it closed the plant, it made a severance payout of Rs 1,296 crore to 2,592 workers.

The return to India marks a significant step in Ford’s global strategy, with plans to hire up to 3,000 more employees in the coming years.


Rohit Kulkarni
Rohit Kulkarni
  • 1087 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online