Ford’s return to India is looking increasingly likely as Tamil Nadu Chief Minister MK Stalin leads talks aimed at reviving Ford’s operations in the country. Ford stopped local manufacturing in India in 2021 due to financial losses and poor sales. Ford may reconsider its decision, spurred by the talks brokered by the Tamil Nadu government. The talks focus on restarting Ford’s plant in the important industrial hub of Chennai, as well as tapping into India’s growing automobile market. If successful, the move would breathe new life into Ford’s operations in India, create jobs and boost economic growth. The talks mark a potential boost to the state’s industrial ecosystem and are also in line with India’s efforts to become a global automotive manufacturing hub.
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Tamil Nadu chief minister holds meeting with Ford officials: Key points
Ford Motor Company has reportedly been in talks with the Tamil Nadu government for over six months and the company is almost ready to decide on its plans in India and the future of its Maraimalainagar plant. The Tamil Nadu government has encouraged Ford Motor Company to revive its three-decade-long partnership with the state to restart operations at the plant near Chennai.
During his meeting with business leaders, Stalin, who is on a two-week visit to the US, also urged Ford to expand its Global Technology Centre in Chennai. He invited executives from IT Serve Alliance, an alliance of leading US-based IT services companies for small and medium enterprises, to explore new investment opportunities in Tamil Nadu, according to a government statement. He met with Ford India executives in Chicago, including Director Government Affairs Dr Sripath Pat, Vice President Matthew Kotlowski and Kay Hart, President, Ford International Markets Group. Later, Stalin tweeted on X, “Had a very good discussion with the Ford Motor team! Explored the feasibility of renewing Ford’s thirty-year partnership with Tamil Nadu, once again serving the world from Tamil Nadu!”
The meeting with the Tamil Nadu Chief Minister comes after the company’s executives met officials from the Ministry of Industries.For those who don’t know, Ford closed its Maraimalai Nagar plant in July 2022 and left India due to losses and the downturn in the passenger vehicle industry caused by the coronavirus pandemic.
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Some market reports also claim that Ford’s India 2.0 strategy is expected to involve both export-oriented manufacturing and assembly for the local market. Initially, the Maraimalainagar plant is likely to be used primarily as an export-oriented plant, focusing on assembling electric vehicles (EVs) for the Southeast Asian market.
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