Ford Restart Plant in India

Ford to restart operations in India, expanding its automobile industry

Ford Motor is in discussions with India's Tamil Nadu about manufacturing vehicles, informed by the Government of Tamil Nadu. 

On September 9, 2021, Ford India declared the discontinuation of its operations and ceased manufacturing activities in Chennai in August 2022. Ford halted car production in India for domestic sales facing difficulties in increasing production, and discontinued exports in 2022, thereby exiting the third-largest global car market.

Restarting the plant indicates that the US automobile manufacturer might begin manufacturing again in India following its departure from the country three years prior.

Making Tamil Nadu serve new global markets: CM Stalin

M.K. Stalin posted on X saying, “Had a very engaging discussion with the team from Ford Motors. Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make Tamil Nadu for the world.”

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

Also, Kay Hart said, “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.”

Ford Sold Plants to Tata Motors

In 2023, Ford sold its two plants to Tata Motors while the other plant in Chennai, Tamil Nadu was permanently closed.

Ford’s Failure to Make Partnership with Mahindra & Mahindra

Ford decided to leave the market following the failure of Ford and Mahindra & Mahindra to make a partnership for a joint venture. The partnership would enable Ford to continue its production of cars in India at a reduced price.

Ford, which produced its EcoSport and Endeavour SUVs in India, held a share of less than 2% in the nation's passenger vehicle market at the time it halted its manufacturing.