Ford India’s revival of Chennai factory is in full swing

Ford’s team is in high-level talks with stakeholders, and tariff-related issues are being resolved before production begins in Chennai plant

The famous American automaker Ford is watching the comeback of the Indian market after four years of huge gap. The company closed its sales in India in September 2021 due to low sales. However, it continues until 2022 export operations, from its production facilities in Tamil Nadu and Gujarat. According to recent media reports, Ford is making final adjustments to plans to restore the Chennai plant. Discussions are underway with stakeholders and issues related to tariffs are being addressed.

Media reports have completely rejected earlier rumors claiming that the company’s plan to resume its factory in Maraimalai Nagar near Chennai has faced hurdles. Officials closer to development say negotiations are still going on and there will be fruitful things soon.

“Ford is finalizing their plans and we are discussing with them. Sources said. The new government is addressing issues related to Tarif in Chennai. Last September, Ford said it was considering production in Chennai’s manufacturing sector. In addition, It also announced plans to expand its global capability center in Chennai.

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Senior officials from U.S. automation have submitted a letter of intent (LOI) to Tamil Nadu and plan to start production and exports at their Chennai plant. The announcement comes after a formal meeting between Ford Motor Company MK Stalin, MK Stalin, Tamil Nadu, during a US visit. The Ford team includes Vice President of International Government Affairs, Matthew Kotlowski, Director of Government Affairs of Ford India, etc.

American brands have been selling cars in India since 1995. It started a sales business with Mahindra & Mahindra’s 50:50 joint venture. But, three years later, it increased its bet to 72%. However, it wasn’t until 2013 that the company had real success with the launch of the EcoSport, which was touted as India’s first 4-M SUV. The company invested about $2 billion in India’s three decades.

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Last year, Ford India sold its Sanand facility in Gujarat to Tata Auto. This also held talks with JSW Group to sell the Chennai plant, but the deal was not implemented. Vietnamese electric car maker Vinfast also expressed interest in buying the factory in Chennai, but talks collapsed again. In fact, MG Motor India, which is now joint venture with JSW Group, also wants to buy the production unit, but nothing specific happened.