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Ford to resume manufacturing in India for export markets
Industry News- Sep 16,24
With engine manufacturing operations in Sanand, India remains Ford's second-largest salaried workforce globally.
Ford has announced plans to restart manufacturing operations at its Chennai plant in Tamil Nadu, focusing on producing vehicles for export markets. The company had ceased vehicle production for sale in India in September 2021, but this new initiative will leverage the Chennai facility for international exports.
While Ford has not confirmed any plans to resume sales operations in India, the decision comes as the country has become the third-largest car market globally. Currently, Ford's sales outlets in India have closed, leaving only service and spare parts centres operational.
Ford began its Indian operations in 1995, with manufacturing facilities in Chennai and Sanand, Gujarat. The Chennai plant, which had an annual production capacity of 200,000 vehicles, was known for producing SUVs like the EcoSport and Endeavour. The Sanand plant, with a capacity of 240,000 vehicles and 270,000 engines annually, produced models including the Aspire sedan, and the Figo and Freestyle hatchbacks. Ford sold the Sanand vehicle manufacturing unit to Tata Motors in January 2023 for Rs 7.25 billion, though it continues to produce engines there and run service operations in India.
Ford has submitted a letter of intent to the Tamil Nadu government to confirm its plans for the Chennai plant. This move is part of Ford's Ford+ growth plan and follows a meeting between Ford leadership and Tamil Nadu Chief Minister MK Stalin during his visit to the U.S.
Kay Hart, President, Ford International Markets Group, expressed gratitude for the Tamil Nadu government's support and emphasised the company's commitment to leveraging local manufacturing expertise to serve new global markets.
Ford currently employs around 12,000 individuals in Tamil Nadu and expects to increase this number by 2,500-3,000 over the next three years. With engine manufacturing operations in Sanand, India remains Ford's second-largest salaried workforce globally. Further details on the types of vehicles to be manufactured and other specifics will be disclosed in due course.
(India Today)
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