Posted on 16 Sep 2024
Ford Motor Company announced Friday it intends to restart operations at its Chennai car plant in southern India targeting the export market, Kallanish reports.
In a brief statement, the US carmaker said it has submitted a letter of intent to the state government of Tamil Nadu, demonstrating its commitment to India. The facility will be repurposed to focus on manufacturing for the global markets.
The decision follows several meetings with the state government, including one with the chief minister of Tamil Nadul’s government, M. K. Stalin, as part of his visit to the US last week. “Different options” were explored for the plant, Kay Hart, president of Ford International Markets Group says without elaborating.
“I know people will be curious, but we will have more to share about the type of manufacturing and which export markets we’ll be focusing on, along with other details, in due course,” Hart adds in a LinkedIn post.
Ford exited car manufacturing in India in September 2021, laying off 4,000 employees. Its re-entry comes after the Indian government earlier this year lowered import taxes and promised better conditions for carmakers pledging to invest $500 million in the country.
The Chennai plant had been eyed by Indian conglomerate JSW Group, but a purchase deal fell through last year. Ford is now reportedly in talks with the group, which had earlier announced an EV partnership with SAIC’s MG Motors. Indian automotive company Mahindra is also said to have shown interest in the plant.
Prior to closure, the facility had a capacity to produce 150,000 cars and nearly 340,000 engines per year.
Source:Kallanish
