Ford Considering Continuation of Manufacturing Presence in India: Cancels Deal with JSW Group
Background
Ford officially exited the Indian market in 2021, selling both its manufacturing facilities—one in Sanand, Gujarat, and the other in Chennai, Tamil Nadu. The Sanand plant was successfully acquired by Tata Motors, but the deal with JSW Group for the Chennai plant now seems to be canceled.
Change of Plans
Recent reports suggest a significant turn of events in Ford's exit strategy for the Indian market. While the company had been in advanced discussions with JSW Group for the sale of its Chennai plant, talks abruptly collapsed as both companies were nearing a deal.
Retaining Manufacturing Presence
The unexpected development raises speculation that Ford might be considering retaining its manufacturing presence in India. The decision to cancel the deal with JSW Group could indicate a desire to continue operations or possibly a more favorable proposition from other potential buyers.
Other Contenders
Besides JSW Group, Mahindra & Mahindra Group and Vinfast, a Taiwanese electric car manufacturer, were reportedly in the race for acquiring Ford's Chennai plant. JSW Group, having recently entered the auto business, was considered a frontrunner.
Re-establishing Presence
Reports suggest that Ford India is contemplating re-establishing its presence and is considering hiring personnel for potential future operations. However, the situation is dynamic, and a final decision is yet to be made.
Activity at Chennai Plant
There has been a noticeable increase in activity at Ford's Chennai plant, including certain appointments, indicating a potential shift in Ford's strategy for the Indian market.
Electric Car Portfolio
After announcing its exit in 2021, Ford India expressed interest in selling premium imported vehicles in India, including its electric car portfolio. The company had won Production-Linked Incentive (PLI) schemes for electric cars set by the Indian Government.
No Certainty Yet
While there are signs pointing to a potential comeback in terms of production, there is no certainty about Ford India's future plans, and the company is reportedly still evaluating its options.
The unexpected turn of events, including the cancellation of the deal with JSW Group and increased activity at the Chennai plant, has fueled speculation about Ford India's reconsideration of its manufacturing presence in the country. The final decision and future plans of Ford India are eagerly awaited as the automotive landscape in India continues to evolve.