Ford rethinks India exit strategy, abandons sale of Chennai plant
Ford Motor Company appears to be reevaluating its decision to leave the Indian market, just two years after announcing its departure. The US-based car manufacturer has also halted plans to sell its Chennai plant to the JSW Group. As per reports, Ford is rethinking whether it wants to leave the country, which is now being touted as one of the world's fastest-growing automotive markets.
Ford spokesperson's comment on speculations
A Ford India representative addressed the rumors about the company's potential change of heart regarding its exit from India. He stated, "We continue to explore alternatives for our manufacturing facility in Chennai and have nothing further to share on the speculations." The Chennai facility, which has been closed since July 2022, spans 350 acres and has an annual capacity of 150,000 cars and nearly 340,000 engines.
Ford's history in India and accumulated losses
Initially entering India through a partnership with Mahindra, Ford accumulated over $2 billion in operating losses within a decade. Since 2021, Ford India has shifted its focus to supporting a service network, importing and distributing automotive parts, and selling extended warranties. In January, Tata Motors's subsidiary Tata Passenger Electric Mobility acquired Ford's Sanand plant in Gujarat for Rs. 725.7 crore to expand its electric vehicle (EV) production.
