Ford is in talks with the Tamil Nadu government to produce vehicles for exports
Ford Motor Company has recently held discussions with the Tamil Nadu government, exploring the possibility of resuming vehicle production for export purposes. This marks the second such interaction between Ford and the Tamil Nadu government in 2024, suggesting that the automaker may be contemplating a renewed presence in India after ceasing local manufacturing three years ago.
The talks were confirmed by Tamil Nadu Chief Minister MK Stalin, who revealed details of the meeting on social media, stating that the conversation focused on the potential for reviving Ford’s manufacturing operations in the state. “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 in Tamil Nadu for the world!” the Chief Minister said in a tweet following the meeting.
Ford had halted domestic car production in India in 2021 after years of struggling with low sales volumes. The company’s exit was followed by the cessation of export production in 2022. In 2023, Ford sold one of its two plants in India to Tata Motors while closing the other, located in Chennai. Despite this, the company continues to evaluate potential options for its Chennai facility, according to a company statement.
Future Prospects: Ford Everest and EV Plans
In addition to discussions about export production, there are indications that Ford is considering the launch of the Everest SUV in India as a completely built unit (CBU). The Everest, a popular SUV in international markets, would likely cater to premium consumers, signalling Ford’s potential strategy of focusing on higher-margin imports rather than mass-market vehicles in India.
Moreover, the company is reportedly working on an all-new, affordable electric vehicle (EV) platform, aligning with broader trends in the Indian automotive market, where EVs are gaining traction. While no official announcement has been made, this could form part of Ford’s long-term strategy to re-enter the Indian market with a more future-forward product lineup.
Tamil Nadu: A Growing Auto Hub
The talks between Ford and Tamil Nadu are part of a broader effort by the state government to attract foreign investments, particularly in the automotive and auto component sectors, where Tamil Nadu has long been a leader. Chief Minister Stalin has been actively engaging with global companies, seeking to further strengthen the state’s position as a manufacturing hub.
The potential return of Ford would add to Tamil Nadu’s robust auto industry, which already hosts several major players. While no agreements have been finalised, the discussions highlight the state’s ongoing efforts to draw new investments and foster economic growth in the automotive sector.
Ford’s future in India remains uncertain but the recent developments suggest that the company is open to re-exploring the market, with a potential focus on exports, premium imports like the Everest and electric vehicles.
Ford’s renewed discussions with Tamil Nadu signal its interest in making a comeback in India, albeit in a different form. While concrete details are still awaited, the prospects of exporting from Tamil Nadu and the potential launch of the Ford Everest and a new EV platform show that the automaker remains engaged with the country’s evolving automotive landscape. Whether this leads to a full-fledged return to manufacturing remains to be seen.
