Ford Motor has engaged in discussions with the southern Indian state of Tamil Nadu about restarting vehicle production for export purposes, according to the state’s chief minister, M.K. Stalin.
The U.S. automaker halted its car production in India three years ago after struggling to compete in a market dominated by Asian manufacturers.
“Had a productive discussion with Ford Motors’ team. We explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu, focusing on making vehicles for the world,” Stalin shared on X (formerly Twitter).
Ford confirmed it is still evaluating potential options for its plant in Chennai, the state capital, in a bid to find a suitable path forward. Despite operating two plants in India, Ford held less than 2% of the country’s passenger vehicle market at the time it ceased production, after two decades of unprofitable operations.
In 2022, Ford indicated it was considering repurposing one of its Indian plants for electric vehicle (EV) manufacturing aimed at exports. The decision to stop production followed the collapse of a joint venture deal with India’s Mahindra & Mahindra, which could have allowed Ford to continue producing vehicles at a lower cost.
