Ford Motors Drive Back to India After 2 Years of Gap

In a recent turn of events, one of the world’s biggest automobile company, Ford is coming back to the Indian market after a 3 years gap. The company told the media that it plans to restart its Chennai plant for exports. 

Ford said that it has submitted a letter of intent to the state government of Tamil Nadu. The company exited the market about 3 years ago because of declining sales, mainly because of the Asian dominance in the Indian car market and struggles to boost production volume in the manufacturing facility. 

The president of Ford International Markets Group, Kay Hart, said in a statement, “We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant. 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.”

After announcing its departure in September 2021, Ford initially pursued the government’s PLI scheme but soon scrapped its plans to produce electric vehicles (EVs) in India for international markets. Yet, whispers of Ford’s return have never faded since its exit.

In a surprising twist last year, Ford backed out of its plan to sell the Tamil Nadu factory (having already sold its Gujarat plant to Tata), its last remaining production site in India. This happened after sealing a deal with Sajjan Jindal’s JSW Group. Speculation about Ford’s re-entry has only grown, fueled by India’s rapidly maturing automotive market, where global brands like Kia and MG Motors have thrived in a short span.

As the influence of China and Europe wanes, India emerges as a prime target for expansion. “The feeling is that staying out of India is no longer viable, especially given Ford’s strong brand recognition among potential buyers,” a source revealed to TOI. The country’s new EV policies could serve as a major draw for Ford’s much-anticipated comeback.