ONCE AGAIN FORS PLANS TO ENTER INDIA

Ford Motor is is officially ready to restart its manufacturing operations in Tamil Nadu, India, focusing on exports, the company announced on Friday. This marks a potential re-entry into a market it exited three years ago.

Ford has submitted a letter of intent to the Tamil Nadu government, following the state's chief minister's statement that discussions were underway to resume manufacturing.

Ford had halted domestic production in India in 2021 and ceased exports in 2022, exiting what is now the world's third-largest car market, dominated by Asian manufacturers.

The company said the Tamil Nadu facility would be repurposed to focus on manufacturing vehicles for export to global markets, with further details on the types of cars to be produced to be disclosed later.

"This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets," said Kay Hart, President of Ford International Markets Group.

The strategic move is part of Ford's broader 'Ford+ growth plan,' and the company reiterated its long-term commitment to India as an important player in its global operations. Before its exit, Ford manufactured cars and engines at its Chennai plant, which it plans to restart for export purposes.Reports in March 2024 had suggested that Ford was planning a comeback, with job listings for the Chennai plant appearing on LinkedIn. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, with plans to add 2,500 to 3,000 jobs over the next three years.

Ford had previously sold its Sanand vehicle manufacturing plant to Tata Motors but faced delays in winding down its operations in Chennai, missing its original 2022 target. With the latest announcement, Ford aims to capitalize on India's skilled workforce and manufacturing infrastructure to serve new global markets.