Ford explores vehicle manufacturing for export in Tamil Nadu, India

Ford Motor Company is currently in discussions with the Tamil Nadu state government in India to explore the potential for vehicle manufacturing aimed at export markets. This initiative comes after Ford's exit from the Indian market, where it faced significant challenges, including a lack of profitability and a minimal market share. The company had previously produced models like the EcoSport and Endeavour SUVs but ceased domestic production in 2021 due to ongoing financial losses exceeding $2 billion over a decade. The decision to withdraw from India was influenced by the failure to establish a joint venture with Mahindra & Mahindra, which would have allowed Ford to operate more efficiently in the region. Following this exit, Ford sold one of its two plants in India to Tata Motors and closed its remaining facility in Chennai. The discussions with Tamil Nadu's Chief Minister, M.K. Stalin, indicate a renewed interest in leveraging the state's manufacturing capabilities for global markets. The Tamil Nadu government has expressed optimism about reviving Ford's long-standing partnership with the state, which has lasted for three decades. The chief minister highlighted the importance of this collaboration in potentially revitalizing Ford's operations in India. This move could signify a strategic pivot for Ford as it seeks to re-establish a foothold in one of the world's largest automotive markets. As Ford navigates these discussions, the company is also facing challenges in its stock performance, having lost over 16% in value over the past year. The outcome of these negotiations will be crucial for Ford's future in the automotive landscape, particularly in the competitive Indian market.