After promoting Gujarat plant to Tatas, co appears to be like to start work at Chennai manufacturing unit for exports
NEW DELHI/CHENNAI: After withdrawing twice from the Indian market, Ford Motor Co is betting on the nation for a 3rd time because it introduced recent plans for India via its Chennai manufacturing unit which it had abruptly refused to promote to Sajjan Jindal’s JSW group regardless of superior negotiations.
Ford mentioned on Friday mentioned that it plans to re-start work on the Chennai plant to make automobiles which can be initially aimed for exports to international markets. The corporate’s assertion didn’t expose any speedy plans for the home market, although it seen as a key motive behind the choice to return again once more.
“Ford as we speak introduced that it has submitted a Letter of Intent to the Authorities of Tamil Nadu, confirming its intention to make the most of the Chennai plant for manufacturing for export. The announcement follows a gathering between Ford management and the Chief Minister of Tamil Nadu as a part of his go to to the US,” the corporate’s assertion mentioned, including, “This strategic transfer will see the power repurposed to concentrate on manufacturing for export to international markets, as a part of the corporate’s bold Ford+ development plan.”
TOI was the primary to report on Ford’s impending entry to India in its editions dated December 20 final yr, and on August 3 this yr.
“We’re grateful for the continuing assist from the Tamil Nadu Authorities as we explored totally different choices for the Chennai plant,” mentioned Kay Hart, president, Ford Worldwide Markets Group. “This step goals to underscore our ongoing dedication to India as we intend to leverage the manufacturing experience obtainable in Tamil Nadu to serve new international markets,” the corporate mentioned, including that additional details about the kind of manufacturing and different particulars might be disclosed in “due course”.
Friday’s announcement by Ford follows a gathering between the corporate’s management and Tamil Nadu chief minister MK Stalin as a part of his US tour.
Ford, which had invested over $2.5 billion in India and tasted success with merchandise corresponding to Eco Sport mini-SUV and Figo small automotive earlier than it known as it quits, now believes that Indian market and manufacturing right here will assist it navigate international enterprise as many markets within the West stagnate. Additionally, with China and Europe not being important companies for the corporate, India is the place it’s pinning its hopes on. “More and more, the sensation is that it’s not proper to remain out of India, particularly because the model continues to be well-known to potential consumers,” a supply mentioned.
Ford has had a checkered historical past in India as the corporate was by no means capable of construct a stable enterprise case within the nation regardless of being current right here for over three many years (it first set foot in India in 1995). The corporate did enterprise as a solo entity, and in addition in partnership with Mahindra & Mahindra with whom it had joined fingers when it entered the nation in late nineties and thereafter round 2019. Nevertheless, the JVs didn’t work on each events.
Having didn’t make any affect alone, the corporate had first introduced its exit in September 2021, earlier than making a shock re-entry in February 2022 when it bagged advantages underneath the production-linked incentive (PLI) scheme for electrical automobiles. Nevertheless, it quickly introduced a withdrawal in Might 2022, presumably discovering it extra viable to promote the factories than operating a loss-making enterprise.
The final withdrawal had seen the corporate promote one among its factories at Sanand in Gujarat to Tata Motors, which has now been upgraded by the Indian firm to fulfil its growth wants.
Ford mentioned that the announcement “reaffirms its dedication to India as a crucial marketplace for the corporate’s international operations.”
Ford at the moment employs 12,000 people in International Enterprise Operations in Tamil Nadu, a quantity anticipated to develop by 2,500 to three,000 jobs throughout the subsequent three years. Mixed with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.
Ford additionally has over 10 lakh clients in India to whom it continues to offer buyer assist, together with service, aftermarket components, and guarantee.
NEW DELHI/CHENNAI: After withdrawing twice from the Indian market, Ford Motor Co is betting on the nation for a 3rd time because it introduced recent plans for India via its Chennai manufacturing unit which it had abruptly refused to promote to Sajjan Jindal’s JSW group regardless of superior negotiations.
Ford mentioned on Friday mentioned that it plans to re-start work on the Chennai plant to make automobiles which can be initially aimed for exports to international markets. The corporate’s assertion didn’t expose any speedy plans for the home market, although it seen as a key motive behind the choice to return again once more.
“Ford as we speak introduced that it has submitted a Letter of Intent to the Authorities of Tamil Nadu, confirming its intention to make the most of the Chennai plant for manufacturing for export. The announcement follows a gathering between Ford management and the Chief Minister of Tamil Nadu as a part of his go to to the US,” the corporate’s assertion mentioned, including, “This strategic transfer will see the power repurposed to concentrate on manufacturing for export to international markets, as a part of the corporate’s bold Ford+ development plan.”
TOI was the primary to report on Ford’s impending entry to India in its editions dated December 20 final yr, and on August 3 this yr.
“We’re grateful for the continuing assist from the Tamil Nadu Authorities as we explored totally different choices for the Chennai plant,” mentioned Kay Hart, president, Ford Worldwide Markets Group. “This step goals to underscore our ongoing dedication to India as we intend to leverage the manufacturing experience obtainable in Tamil Nadu to serve new international markets,” the corporate mentioned, including that additional details about the kind of manufacturing and different particulars might be disclosed in “due course”.
Friday’s announcement by Ford follows a gathering between the corporate’s management and Tamil Nadu chief minister MK Stalin as a part of his US tour.
Ford, which had invested over $2.5 billion in India and tasted success with merchandise corresponding to Eco Sport mini-SUV and Figo small automotive earlier than it known as it quits, now believes that Indian market and manufacturing right here will assist it navigate international enterprise as many markets within the West stagnate. Additionally, with China and Europe not being important companies for the corporate, India is the place it’s pinning its hopes on. “More and more, the sensation is that it’s not proper to remain out of India, particularly because the model continues to be well-known to potential consumers,” a supply mentioned.
Ford has had a checkered historical past in India as the corporate was by no means capable of construct a stable enterprise case within the nation regardless of being current right here for over three many years (it first set foot in India in 1995). The corporate did enterprise as a solo entity, and in addition in partnership with Mahindra & Mahindra with whom it had joined fingers when it entered the nation in late nineties and thereafter round 2019. Nevertheless, the JVs didn’t work on each events.
Having didn’t make any affect alone, the corporate had first introduced its exit in September 2021, earlier than making a shock re-entry in February 2022 when it bagged advantages underneath the production-linked incentive (PLI) scheme for electrical automobiles. Nevertheless, it quickly introduced a withdrawal in Might 2022, presumably discovering it extra viable to promote the factories than operating a loss-making enterprise.
The final withdrawal had seen the corporate promote one among its factories at Sanand in Gujarat to Tata Motors, which has now been upgraded by the Indian firm to fulfil its growth wants.
Ford mentioned that the announcement “reaffirms its dedication to India as a crucial marketplace for the corporate’s international operations.”
Ford at the moment employs 12,000 people in International Enterprise Operations in Tamil Nadu, a quantity anticipated to develop by 2,500 to three,000 jobs throughout the subsequent three years. Mixed with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.
Ford additionally has over 10 lakh clients in India to whom it continues to offer buyer assist, together with service, aftermarket components, and guarantee.
| 1995 | Began enterprise in India in partnership with Mahindra & Mahindra |
| 1998 | Turned solo operations as Ford-Mahindra partnership ended |
| 2019 | Struggling Ford re-aligns with Mahindra as soon as once more, declares an bold three way partnership |
| Dec 31, 2020 | Ford-Mahindra JV known as off |
| Sept 9, 2021 | Withdraws from India, declares closure of auto manufacturing by Q2, 2022 |
| Feb 11, 2022 | Ford makes a second comeback, chosen for PLI scheme for manufacturing and promoting electrics |
| Might 12, 2022 | Withdraws from nation, takes again PLI utility |
| Sept 13, 2024 | Re-enters India for third time, declares manufacturing plans from Chennai for international markets |
Stats
Whole investments in India to this point:
$2.5 billion
Amassed losses on the time of withdrawal :
$2 billion
