Having entered the Indian market in 1994, Ford, the American automaker, recently concluded its 27-year stint in the country by halting local production in September 2021. The winding down of manufacturing operations took place at the Sanand plant by Q4 2021 and the Chennai engine and vehicle facility by Q2 2022. Despite ceasing local car manufacturing, Ford sustained its presence in India through the import of completely built-up units (CBUs) and continued backend operations.
Ford had been actively seeking a buyer for its sprawling 350-acre Chennai facility since its departure from the Indian market. Initial talks involved discussions with 2-3 companies, and in August 2023, Mahindra & Mahindra expressed interest in acquiring the plant. However, no significant progress was reported at that time. Subsequently, the spotlight shifted to VinFast, a Vietnam-based electric vehicle manufacturer, and the Sajjan Jindal-led JSW Group as potential buyers.
In a recent development, it has been revealed that Ford has decided to cancel its plans to sell the Chennai-based facility, despite having reached an agreement with the JSW Group, which valued the deal at around US$100 million. Simultaneously, Ford has secured a 35% stake in a joint venture with China-based SAIC, focusing on augmenting local sourcing, enhancing charging infrastructure, and expanding production capacity.
Although the precise reasons for the deal’s breakdown remain undisclosed, it has intensified speculation about Ford’s manufacturing future in India. Reports suggest that Ford is contemplating an expansion of its team in India through the recruitment of additional employees. Rumors circulating in the industry hint at Ford evaluating the possibility of a comeback in India, although no official confirmation has been issued.
As Ford navigates this period of transition, it leaves the industry pondering its future trajectory and the potential implications for its presence in the Indian market. Keep an eye on IndiaCarNews for further updates regarding Ford’s future strategy for its Chennai facility.
