Ford is returning to India, but not yet for the Indian market. Then what are they returning for? Exporting to international markets. Ford has given a letter of intent to the Government of Tamil Nadu to inform them of their intentions to restart manufacturing in India. This comes 3 years after Ford had announced their exit from the Indian market in 2021 because of their meagre sales and losses.
Ford India Operations Currently
Ford presently employs 12,000 individuals in Global Business Operations in Tamil Nadu. Ford expects this number to grow by 2,500-3,000 jobs within the next three years. When combined with its engine manufacturing operations in Sanand, India is Ford's second-largest salaried workforce worldwide.
What Ford President's Statement
Kay Hart, President of Ford International Markets Group, said, "We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant," She added, "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."
What Tamil Nadu CM Said
M.K. Stalin shared a post on X stating, "Had a very engaging discussion with the team from Ford Motors! Explored the feasibility of renewing Ford's three decade partnership with Tamil Nadu, to again make Tamil Nadu for the world!"
Possible Entry in India Market
With manufacturing started, the next step could be the return of Ford in the Indian market, too. This seems likely as models like the Ford Everest (previously sold in India as Endeavour) and the Ranger were spotted testing in India. That being said, Ford has not officially confirmed any of this yet.
Ford's 2021 India Exit
Ford exited India in September 2021 after struggling for years to achieve profitability. Even though the brand had invested over $2 billion, it failed to capture a significant market share in India. The company's decision came after years of losses, amounting to around $2 billion in the previous decade. Ford ceased local manufacturing at its plants in Sanand, Gujarat, and Chennai, Tamil Nadu. The Gujarat Plant was sold to Tata Motors in 2023. The company retained its research and development operations in India, which we talked about earlier.
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