Ford had ceased sales in India in 2021.
Automotive giant Ford Motor Company has announced its plans to resume operations in Tamil Nadu. The American automaker says it has submitted a 'Letter of Intent' to the Tamil Nadu Government. The development signals a positive turnaround after a brief hiatus.
Ford had ceased sales in India in 2021 and halted exports from the country in 2022.
This development comes on the heels of a productive meeting between Tamil Nadu Chief Minister M K Stalin and Ford's leadership in the United States.
The automaker "will repurpose its Chennai plant to focus primarily on exports to global markets" according to its statement to NDTV. While specific details about the type of manufacturing activities are yet to be disclosed, Ford's decision marks a strategic shift in its India operations.
Ford's presence in Tamil Nadu has been substantial, with over 12,000 employees. The company's plan to resume operations is expected to create an additional 3,000 jobs over the next three years.
However, industries department sources told NDTV that the Tamil Nadu government's sustained efforts with Ford's leadership, including two visits by Industries Minister T R B Rajaa to the United States since 2023, have highlighted the state's rapid advancements in the automotive and electric vehicle sectors that persuaded the automaker. Ford had asked for 6 months to decide on its return to India.
M K Stalin's visit and assurance of a smooth reintegration into the Indian market, sources said turned into a deal clincher.