According to a report by Reuters, Tamil Nadu's Chief Minister M.K. Stalin revealed that Ford Motor Company has held discussions with the state of Tamil Nadu regarding the possibility of producing and exporting vehicles from the region. Ford exited the Indian market three years ago, and this engagement with Tamil Nadu may signal a potential restart of its production activities in India.
Stalin shared on social media, "We had a very interesting discussion with the team from Ford Motor Company, exploring the feasibility of continuing our 30-year partnership and once again manufacturing products in Tamil Nadu for global markets." Ford also issued a statement saying it is continuing to seek suitable solutions for its Chennai plant.
After efforts to increase production failed, Ford stopped producing vehicles for the local Indian market in 2021, and by 2022, it had also ceased exporting from India, effectively marking its exit from the country. Ford previously operated two factories in India but sold one to Tata Motors in 2023 and shut down the other.
Previously, Ford produced the EcoSport and Endeavour models in India, but its market share in the country's passenger car segment was under 2%, and the company struggled to achieve profitability for years. When exiting the Indian market, Ford stated that it had accumulated over $2 billion in losses over the preceding decade, and demand for its new cars in India remained weak.
Before deciding to leave, Ford had attempted to form a joint venture with Indian automaker Mahindra & Mahindra. If the partnership had succeeded, Ford would have been able to continue producing vehicles in India at a lower cost.
However, Ford still manufactures engines for its Ranger pickup at its plant in western India and sources parts from local suppliers for its global factories.
