Tamil Nadu CM MK Stalin with Ford Motor officials in the US on Wednesday.
Tamil Nadu Chief Minister MK Stalin on Wednesday said he held key talks with Ford Motor to explore the possibility of producing vehicles for export. In a post on X (formerly Twitter), Stalin said, “…Explored the feasibility of renewing Ford’s three-decade-old association with Tamil Nadu, to get back to ‘Make in Tamil Nadu for the world’.”
The American automaker exited India in 2021 after struggling to boost sales in a market dominated by Asian rivals. Ford is continuing to explore suitable alternatives for its plant in Chennai, the capital of Tamil Nadu, the automaker said in a statement.
Why did Ford Motor exit India in 2021?
Ford ended its production in India after struggling for more than 20 years to turn a profit, with a market share of less than 2% of passenger vehicles. In 2022, the company considered using its Indian plant to export electric vehicles. However, the plan did not materialise after Ford and Mahindra & Mahindra failed to finalise a joint venture. In December 2023, Business Standard reported that Ford was re-evaluating its decision to return to the Indian market while studying the future of its Chennai plant.
Ford’s Maraimalai Nagar plant in Chennai is spread over 350 acres and has an annual production capacity of around 200,000 vehicles and 340,000 engines. The plant’s location is logistically viable due to its proximity to the Chennai Port, which is 50 kilometres away. It is 74 kilometres from Ennore Port and is easily accessible from Bengaluru.
Stalin secures another big deal for TN
On Monday, Stalin signed agreements worth over Rs 2,600 crore with Jabil, a leading electronics manufacturing services provider, and Rockwell Automation for investment activities in Tamil Nadu. The deal is expected to create 5,365 jobs, according to an official press release. Besides, agreements worth Rs 850 crore have also been signed with three US companies.
The focus on renewed investment opportunities for Tamil Nadu comes at a time when the government has set a target of achieving a $1 trillion economy by 2030.
First published: September 11, 2024 | 11:22 am IS
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