Ford rethinks India exit strategy, puts Chennai plant sale on hold

Ford reviews plans to leave world's one of the fastest growing auto market.

Two years after it announced plans to exit India, Ford Motor Company has decided to give it a rethink, people aware of the development told Moneycontrol, requesting anonymity. The American auto giant, which was till recently engaged with JSW group to sell its Chennai plant, has shelved the plans till further notice.

“Ford is rethinking whether it wants to leave India, one of the world’s fastest-growing auto markets,” a one of the sources said.

“We continue to explore alternatives for our manufacturing facility in Chennai and have nothing further to share on the speculations," a spokesperson for Ford India said.

Ford’s Chennai facility, spread across 350 acres with an annual capacity of 150,000 cars and almost 340,000 engines, has stopped production since July 2022. Its second facility at Sanand, Gujarat, was acquired by Tata Motors’ subsidiary Tata Passenger Electric Mobility in January for Rs 725.7 crore as the homegrown carmaker aimed to augment its EV production.

According to media reports, the US carmaker was also in talks with a Vietnamese EV maker to sell off the Chennai plant.

The US giant, which entered India through a joint venture with Mahindra and Mahindra (M&M), had accumulated over $2 billion in operating losses in 10 years. Since 2021, Ford India has focused on the businesses of supporting a service network, import and distribution of automotive parts, and the sale of extended warranties.

Read: With the last EcoSport rolling off production line, it is curtains down for Ford India

Some of the top-selling models of Ford India were Figo hatchback, Figo Aspire sedan and Endeavour SUV and EcoSport compat SUV. Among them, EcoSport was the last model in production.