Ford has announced plans to restart production operations at its plant in Chennai, Tamil Nadu, a major step in the company’s strategy to regain momentum in the Indian automobile market. The plant (which had been halted in 2021) could once again become a hub for export vehicle manufacturing as Ford looks to meet growing demand and leverage its infrastructure in the region. The move is expected to create new jobs and stimulate local economic growth. While the company has not revealed any details about re-entering the Indian market through sales operations, it may consider taking an aggressive step in this direction considering that India is currently the third largest automobile market in the world.
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Ford to start car production in India
Ford has submitted a letter of intent to the Tamil Nadu government, confirming its plans to use its Chennai plant for export manufacturing, the company announced in an official statement. The development came after a meeting between Ford officials and Tamil Nadu Chief Minister MK Stalin during his visit to the US. The manufacturer said the strategic move will involve repurposing the Chennai plant to focus on manufacturing vehicles for export to international markets in line with its Ford+ growth strategy.
Kay Hart, group president, Ford International Markets, said: “We appreciate the continued support of the Government of Tamil Nadu as we have been exploring different options for our Chennai facility. This move is intended to underscore our continued commitment to India as we intend to leverage Tamil Nadu’s manufacturing expertise to serve new global markets.”
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Ford started its operations in India in 1995 with integrated manufacturing plants in Chennai, Tamil Nadu, and Sanand, Gujarat. The Chennai plant has an annual production capacity of 200,000 vehicles, while the Sanand plant can produce 240,000 vehicles and 270,000 engines per year. The company manufactures SUVs such as EcoSport and Endeavour at the Chennai plant, while the Aspire sedan and hatchbacks such as Figo and Freestyle are manufactured at the Sanand plant. In January last year, the company sold the vehicle manufacturing unit of the Sanand plant to Tata Motors. However, Ford continues to manufacture engines at the Sanand plant and maintains its service operations in India.
The company currently has 12,000 employees across its global operations in Tamil Nadu and plans to add 2,500-3,000 employees in the next three years. Apart from its engine manufacturing operations in Sanand, India is home to Ford’s second largest salaried workforce globally.
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