Ford in talks to restart production in India for export

Ford Motor has held talks with officials in India’s Tamil Nadu state to explore producing vehicles for export, the state’s chief minister MK Stalin says.

The engagement signals the US carmaker could restart production in India after exiting the country three years ago. Ford stopped producing cars in India for domestic sale in 2021 after struggling to boost volumes. It pulled the plug on exports in 2022, effectively exiting the world’s third-largest car market that is dominated by Asian rivals.

Ford sold one of its two plants in India to Tata Motors in 2023. Its other plant, which is in Chennai, Tamil Nadu state, was shuttered. The Chennai plant produced the EcoSport, which was exported to SA, where it was a long-time best seller in the small SUV segment. 

“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,” said Stalin in a post on X.

Ford continues to explore suitable alternatives for its plant in Chennai, the carmaker said in a statement.

Ford, which made its EcoSport and Endeavour SUVs in India, had a less than a 2% share of the country’s passenger vehicle market when it stopped production, having struggled for years to turn a profit.

When it stopped production, Ford said it had accumulated losses of more than $2bn over a decade and demand for its new vehicles had been weak.

The decision to exit the Indian market came after Ford and local vehicle maker Mahindra & Mahindra failed to finalise a joint venture partnership that would have allowed the US company to continue making cars in India at a lower cost.

Ford continues to build engines for its Ranger pickup at its factory in western India and source parts from local suppliers for global operations. With Reuters