publive-image

Ford Plans $500M EV Production at Tamil Nadu Plant

Ford Motor is back in India. The car manufacturer is planning to produce electric vehicles in its Tamil Nadu plant after a gap of three years. The automobile company is struggling to get back itself in the third-largest car market in the world as Ford shut its local plants in 2021.

Tamil Nadu's industries minister, T.R.B. Rajaa, hinted that Ford's return might include electric vehicle production. It fits well with the state's growing reputation as an EV manufacturing hub.

Ford is in talks over its possible return to India. This time, the discussion includes producing electric vehicles at its Tamil Nadu facility. Three years since Ford shut down local factories in India, this is a new direction for the company.

The State Industries Minister of Tamil Nadu, T.R.B. Rajaa, said that the output would most probably include EVs while reacting to the proposal to use its existing plant in Chennai. This move is part of a broader trend of automakers making their way towards making EVs in Tamil Nadu.

The details of Ford's plan are to manufacture electric vehicles in India to counter a rapidly expanding market for electric vehicles in the country. The auto manufacturing company will return after it quits and is using the existing infrastructure at its Chennai plant.

This has made Tamil Nadu an attractive destination for domestic as well as international auto manufacturers who want to invest in the production of electric vehicles, hence adding to the state's position in the global automobile manufacturing market.

The company had even written a letter of intent to the state government mid-September to use its Chennai facility for export purposes. This is part of India's wider move to scale up EV manufacturing. The central government has reduced import taxes for carmakers promising investment of at least $500 million. Ford currently employs 12,000 people in Tamil Nadu operations where it plans to increase by up to 3,000 jobs in the next three years