Ford in talks with Tamil Nadu to revive electric vehicle manufacturing

Ford in talks with Tamil Nadu government to produce cars for export

Ford Motor Company recently held discussions with the Tamil Nadu government to explore the possibility of resuming vehicle production for exports. This is the second interaction between Ford and the Tamil Nadu government in 2024, indicating that the automaker may be considering resuming operations in India after ceasing local manufacturing three years ago.

Tamil Nadu Chief Minister MK Stalin confirmed the meeting, revealing details of the meeting on social media and saying that the talks focused on the possibility of resuming Ford’s manufacturing operations in the state. The Chief Minister tweeted after the meeting: “Had a very pleasant discussion with the Ford Motor team! Discussed the feasibility of renewing Ford’s 30-year partnership with Tamil Nadu and once again manufacturing for the world in Tamil Nadu!”

Ford Motor Co. halted domestic vehicle production in India in 2021 after years of sluggish sales. The company exited the Indian market and then stopped export production in 2022. In 2023, Ford sold one of its two plants in India to Tata Motors while closing the other in Chennai. Still, the company is evaluating potential options for its Chennai plant, a company statement said.

Future Outlook: Ford Everest and Electric Vehicle Plans

Besides the talk of export production, there are signs that Ford is considering launching the Everest SUV in India from its own plant. The Everest is a popular SUV in international markets that is likely to cater to premium buyers, suggesting Ford’s potential strategy is to focus on higher-margin imports rather than launching mass-market cars in India.

Additionally, the company is reportedly developing an all-new, affordable electric vehicle (EV) platform to tap into the broader trend in the Indian automotive market, where electric vehicles are gaining popularity. While it has not been officially announced, this could be part of Ford’s long-term strategy to re-enter the Indian market with a more forward-looking product lineup.

Tamil Nadu: A growing automotive hub

The talks between Ford and Tamil Nadu are part of the state government’s broader efforts to attract foreign investment, especially in the automobile and auto components sectors, where Tamil Nadu has long been a leader. Chief Minister MK Stalin has been actively reaching out to multinational companies, seeking to further strengthen the state’s position as a manufacturing hub.

Ford’s return would add new life to Tamil Nadu’s robust auto industry, which is already home to several major automakers. While no deal has been reached, the talks highlight the state’s ongoing efforts to attract new investment and boost economic growth in the auto sector.

Ford’s future in India remains unclear, but recent developments suggest the company is willing to re-explore the market and could focus on exports, premium imports (like the Everest), and electric vehicles.

Ford’s renewed talks with Tamil Nadu suggest the company is interested in returning to India, albeit in a different form. While the details are yet to be determined, the prospect of exports from Tamil Nadu and the potential launch of the Ford Everest and new EV platform suggest Ford remains focused on India’s evolving automotive landscape. Whether this will lead to Ford’s full return to Indian manufacturing remains to be seen.