Ford Motor eyes restarting production in India

Ford Motor Company (NYSE:F) signaled that it might have an interest in restarting production in India by holding talks with India’s Tamil Nadu state.

“Had a very engaging discussion with the team from Ford Motors. Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world,” Chief Minister of Tamil Nadu M.K. Stalin stated in a post on X.

In a statement, Ford (F) confirmed that it continues to explore suitable alternatives for its plant in Chennai.

Ford Motor (F) first entered the Indian market in 1995 through a joint venture with Mahindra & Mahindra called Mahindra Ford India Limited. In 1998, Ford (F) increased its stake to 72% and renamed the company Ford India Private Limited. Ford (F) began production at its Chennai plant in 1998, initially manufacturing the Ford Escort. Over the years, Ford (F) introduced many models in India, including the Ikon, Fiesta, Figo, EcoSport, and Endeavour. A second manufacturing facility was opened in Sanand, Gujarat in 2015. Overall, the Detroit auto giant company exported vehicles to over 70 countries from India. However, in September 2021, Ford (F) announced it would cease manufacturing operations in India due to sustained losses.

Shares of Ford Motor (F) are down 15.3% on a year-to-date basis.