Ford will start manufacturing vehicles in India again, cars made in Chennai will be exported to other countries
Ford is set to resume manufacturing cars in India, although the cars made here will only be exported to other markets. The company has announced that it has signed a letter of intent with the Tamil Nadu government to resume manufacturing operations at its Chennai plant. The signing of the document took place following a meeting between the US company’s leadership and Tamil Nadu Chief Minister MK Stalin during his visit to the United States.
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Ford India had earlier announced its decision to discontinue local vehicle manufacturing in 2021, discontinuing the sale of India-made cars such as the Ford Figo, Freestyle, Aspire, EcoSport and Endeavour. While some may see the export-only vehicles as a step towards the company’s return to the Indian car market, any such plans remain unknown at the moment. At the time of discontinuation, Ford had revealed plans to return to India with popular model lines from its global vehicle portfolio such as the Mustang and Mustang Mach E, although these plans have not yet come to fruition.
In a statement, Kay Hart, president, Ford International Markets Group, said, “We are grateful for the Tamil Nadu government’s continued support as we explore various options for the Chennai plant. This move is intended to demonstrate our ongoing commitment to India as we intend to leverage the production plant expertise available in Tamil Nadu to service new global markets.”
The company said that the repurposing of the plant to focus on vehicle exports follows the brand’s Ford+ growth plan. Under the plan, the company has divided its business into multiple verticals, including dedicated verticals for EVs and petrol-diesel vehicles. The plan also calls for improving efficiency while generating strong cash flows and profitable growth.
However, Ford is yet to share more details about its plans to resume manufacturing at its Chennai plant. The company says that more details like type of manufacturing, markets for export, etc. will be revealed in due course.
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Ford’s Global Business Operations in Tamil Nadu currently employs about 12,000 individuals and this number is expected to grow. Ford says that restarting vehicle manufacturing operations could lead to the hiring of up to 3,000 new employees within the next three years.
Apart from the Tamil Nadu plant, Ford still retains its engine manufacturing plant in Sanand. The carmaker sold the Sanand vehicle manufacturing plant to Tata Motors during FY23, although the engine manufacturing plant was retained by Ford India.
Apart from announcing its plans to resume manufacturing cars at its Chennai plant, Ford also reiterated its commitment to existing Ford vehicle owners in India. The company said it will continue to offer comprehensive customer support, spare parts and warranty to its existing vehicle owners.
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