Ford Considers Restarting Operations In India

Ford Motor is in discussions with Tamil Nadu, India, to potentially restart vehicle production for export, marking a possible return after exiting the Indian market in 2021.

The U.S. automaker had ceased local production after struggling to capture market share, having held less than 2% of the passenger vehicle market when it withdrew. The decision to pull out of India came after failed attempts to form a joint venture with Mahindra & Mahindra, and the company reported losses exceeding $2 billion over the previous decade.

In 2023, Ford sold one of its two Indian manufacturing plants to Tata Motors, while its Chennai plant, located in Tamil Nadu, was shuttered. Tamil Nadu’s Chief Minister, M.K. Stalin, confirmed discussions with Ford regarding the feasibility of renewing their three-decade partnership to resume vehicle production for global markets.

Ford, which used to manufacture the EcoSport and Endeavour SUVs in India, has not entirely left the country, as it continues to produce engines for its Ranger pickup trucks at its western India facility. The EcoSport was produced in India and exported to global markets, including the United States.

It's unclear what Ford's plans are for restarting production. This potential move could signal Ford’s attempt to leverage its Indian operations for exports, reviving the possibility of production in a country dominated by Asian automakers like Suzuki and Hyundai​.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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