Ford has reportedly finalised plans to utilise its dormant Chennai facility for manufacturing and exporting engines and related parts, in accordance to sources aware of the matter who spoke to ET.
The firm will reveal the specifics of this initiative within the second quarter of this yr. The plan excludes car manufacturing in India.
“Ford goes to be making engines on the Chennai plant,” confirmed one supply. “It (the power) shall be repurposed for export-focused manufacturing. This resolution is a component of Ford’s broader international technique.”
US carmaker Ford stopped car manufacturing in India in 2021 and exited the next yr, having maintained a restricted market presence all through its 25-yr operation within the quickly increasing South Asian automotive market.
Ford’s India plans
The Maraimalai Nagar facility close to Chennai has remained inactive since mid-2022.
Though discussions about reviving the plant had been ongoing, latest hypothesis urged Ford would possibly abandon its India plans, notably contemplating the Trump administration’s home manufacturing initiatives and implementation of import duties.
Two Indian authorities officers confirmed the plans are continuing as meant, although they remained tight-lipped concerning the particular merchandise slated for manufacture on the facility.
“Senior executives at Ford have had excessive-degree discussions with the Tamil Nadu authorities just lately the place they reiterated their dedication to India,” confirmed one other supply, verifying that the plant would produce engines.
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The engine manufacturing initiative aligns with Ford’s international strategic route, in accordance to sources who spoke to the monetary each day. The firm maintains its export operations from Sanand, the place it transferred the bulk of its manufacturing facility to Tata Motors two years in the past.
Sources point out that export-oriented tasks are of their closing phases, with formal bulletins anticipated imminently, in accordance to a person aware of the developments.
Beforehand, Ford explored introducing electrical automobiles in India and studied the viability of merchandise together with the Endeavour, Everest and the Mustang. These initiatives seem to have been deprioritised in favour of the brand new export-centric strategy.
Following the closure of its Indian dealership community while sustaining service centres, trade analysts counsel Ford’s operations are actually solely targeted on exports.
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