While For’s Sanand plant was successfully handed over to Tata Motors, the deal with JSW Group for its Chennai plant seems to be cancelled
India has been emerging as a major automotive market in the world. Currently, India is among the largest auto industry and has shown growth potential. This is a tempting proposition for newcomers and old darlings alike. We’re talking about Ford India which might have had a change of heart where maintaining its manufacturing presence is concerned.
Ford To Continue Manufacturing Presence In India?
It must be recalled that Ford officially exited the Indian market in 2021 after an unsatisfactory stint in the Asian subcontinent after a USD 2 Billion investment. Following that train of thought, Ford India decided to sell both of its manufacturing facilities – one in Sanand, Gujarat and the other in Chennai, Tamil Nadu.
Said Sanand plant was sold to Tata Motors. This transaction sailed smoothly and Tata Motors successfully acquired Ford’s Sanand plant earlier this year. Ford’s intentions to sell its Chennai plant had advanced-stage discussions between Ford HQ in USA and JSW Group.
Other major players in the race for Ford’s Chennai plant were Mahindra & Mahindra Group, along with Vinfast, a Taiwanese electric car manufacturer. JSW Group was said to be leading this race with a sealed deal almost evident. Recently JSW Group has entered auto business after its association with Chinese State Owned SAIC and its subsidiary MG Motor India.
According to a recent report, Ford’s exit strategy for Indian market has had a significant turn of events where the company has decided to retain its Chennai plant. The report cited its source who said talks among Ford and JSW have collapsed abruptly at the time when both companies were inching towards closing this deal.
Deal with JSW Group cancelled
This could potentially mean that Ford is desiring to maintain a manufacturing presence in India. Or, there may have been a more promising proposition from other parties in the race to acquire Ford’s Chennai plant. The report also mentioned that Ford India is considering re-establishing its presence and may be looking be hire people regarding the same.
Further, the report also cited its source saying that there is no certainty in these developments as Ford is still evaluating and a final decision on re-establishing its former glory is in the pipeline. After announcing its exit strategy from India in 2021, Ford India was keen on selling premium imported vehicles in India including its electric car portfolio.
This was after applying and winning PLI (Production-Linked Incentive) schemes for electric cars set by the Indian Government. The report cited another source who mentioned that there has been a rise in activity in Ford’s Chennai plant including certain appointments. All of these combined, Ford India could potentially make a comeback in Indian market where production is concerned.
