Ford In Talks To Revive Indian Operations, Focus On Exports
Date
9/11/2024 2:31:35 PM
(MENAFN- KNN India)
New Delhi, Sep 11 (KNN) Ford Motor Company is in discussions with the southern Indian state of Tamil Nadu to explore the possibility of resuming vehicle production for exports, Tamil Nadu Chief Minister M.K. Stalin announced on Wednesday.
The U.S. automaker had ceased car manufacturing operations in India three years ago, citing challenges in boosting sales in a market dominated by Asian competitors.
"I had a very engaging discussion with the team from Ford Motors. We explored the feasibility of renewing Ford's three-decade partnership with Tamil Nadu, with a focus on making vehicles in Tamil Nadu for the world," Stalin said in a social media post on X (formerly Twitter).
Ford, which maintains two manufacturing plants in India, continues to assess suitable alternatives for its plant in Chennai, the capital of Tamil Nadu. In a statement, the company confirmed its ongoing efforts to find a productive use for the facility.
Before halting production, Ford held less than a 2 per cent share of the Indian passenger vehicle market, having struggled for more than two decades to turn a profit.
The company had announced in 2022 that it was exploring the potential of using one of its Indian plants as an export base for electric vehicle (EV) manufacturing.
The decision to stop local production came after a proposed joint venture between Ford and India's Mahindra & Mahindra fell through.
The venture would have allowed Ford to continue manufacturing vehicles at a lower cost.
Ford's renewed discussions with Tamil Nadu signal its potential interest in re-establishing its manufacturing presence in India, primarily focused on exporting vehicles to global markets.
(KNN Bureau)
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