Ford To Be Back In India After Two Years, Resume Operations In Tamil Nadu

Ford Motor Company has announced its intention to resume operations in Tamil Nadu, marking a significant shift for the automotive giant. The company has submitted a ‘Letter of Intent’ to the Tamil Nadu Government, signaling a positive development following a brief pause in its Indian operations.

Ford halted sales in India in 2021 and ceased exports from the country in 2022. This new move follows a successful meeting between Tamil Nadu Chief Minister M.K. Stalin and Ford’s executives in the United States.

According to Ford’s announcement, the Chennai plant will be repurposed to primarily focus on exporting to international markets. While specific manufacturing details have not been revealed, this decision represents a strategic adjustment in Ford’s operations in India.

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Ford has had a significant presence in Tamil Nadu, employing over 12,000 individuals. The company’s return is expected to generate an additional 3,000 jobs over the next three years.

Sources from the industries department indicated to NDTV that the Tamil Nadu government’s ongoing engagement with Ford’s leadership, including two visits by Industries Minister T.R.B. Rajaa to the U.S. since 2023, showcased the state’s advancements in the automotive and electric vehicle sectors, which influenced the company’s decision. Additionally, Chief Minister M.K. Stalin’s visit and his assurances of a smooth reintegration into the Indian market were key factors in finalizing the deal.