Is Ford returning to India? Talks with TN government underway
What's the story
Tamil Nadu's Chief Minister, MK Stalin, has initiated discussions with Ford about the possibility of resuming vehicle production for exports.
The talks aim to revive Ford's three-decade-long association with the state under the banner "Make in Tamil Nadu for the world."
This development comes after Ford's departure from India in 2021 due to stiff competition from Asian rivals.
Plant prospects
Ford's future plans for Chennai plant
Ford is currently exploring viable options for its Chennai-based plant, following its exit from the Indian market.
The company had previously considered using this facility to export electric vehicles in 2022. However, this plan did not materialize due to an unsuccessful joint venture with Mahindra & Mahindra.
As of December 2023, reports suggest that Ford is reconsidering its decision to re-enter the Indian market while evaluating the future of its Chennai facility.
Strategic advantage
Ford's Chennai plant: A strategic location
Ford's Maraimalai Nagar facility in Chennai, spanning over 350 acres, has an annual production capacity of approximately 200,000 vehicles and 340,000 engines.
The plant's strategic location near the Chennai port (50km away) and Ennore port (74km away), as well as its easy accessibility to Bengaluru, makes it a logistically advantageous site.
This factor could play a significant role in Ford's potential decision to resume operations.
Investment initiatives
Stalin's investment drive for Tamil Nadu
In addition to the Ford discussions, Stalin has secured deals worth over ₹2,600 crore with Jabil and Rockwell Automation. These agreements are expected to generate 5,365 jobs in Tamil Nadu.
Furthermore, contracts worth ₹850 crore have been signed with three US firms.
This investment drive is part of the state government's strategy to achieve a $1 trillion economy by 2030.