Ford has reportedly finalised plans to utilise its dormant Chennai facility for manufacturing and exporting engines and related parts, in accordance with sources aware of the matter who spoke to ET.
The corporate will reveal the specifics of this initiative within the second quarter of this 12 months. The plan excludes automobile manufacturing in India.
“Ford goes to be making engines on the Chennai plant,” confirmed one supply. “It (the ability) will probably be repurposed for export-focused manufacturing. This determination is a part of Ford’s broader world technique.”
US carmaker Ford stopped automobile manufacturing in India in 2021 and exited the next 12 months, having maintained a restricted market presence all through its 25-year 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, current 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 high-level 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 world strategic path, in accordance with sources who spoke to the monetary each day. The corporate maintains its export operations from Sanand, the place it transferred nearly all of its manufacturing facility to Tata Motors two years in the past.
Sources point out that export-oriented tasks are of their last levels, with formal bulletins anticipated imminently, in accordance with a person aware of the developments.
Beforehand, Ford explored introducing electrical autos 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 method.
Following the closure of its Indian dealership community while sustaining service centres, business analysts counsel Ford’s operations at the moment are solely targeted on exports.
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