 "Tamil Nadu CM MK Stalin")
Tamil Nadu CM MK Stalin with officials of Ford Motor in US on Wednesday.
Tamil Nadu Chief Minister MK Stalin said on Wednesday that he held key discussions with Ford Motor to explore producing vehicles for exports. In a post on X (formerly Twitter), Stalin said, “…Explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu, to again ‘Make in Tamil Nadu for the world’!”
The US automaker exited India in 2021 after struggling to boost sales in a market dominated by Asian rivals. Ford continues to explore suitable alternatives for its plant in Tamil Nadu’s capital Chennai, the automaker said in a statement.
Why did Ford Motor exit India in 2021?
Ford ended production in India after struggling for over 20 years to make a profit, holding less than 2 per cent of the passenger vehicle market. In 2022, the company considered using its Indian plant for exporting electric vehicles. However, the plan did not materialise after Ford and Mahindra & Mahindra could not finalise a joint venture. In December 2023, Business Standard reported that Ford was re-evaluating its decision to make a comeback into the Indian market while considering the future of its Chennai plant.
Ford’s Maraimalai Nagar facility in Chennai spread over 350 acres, had an annual production capacity of around 200,000 vehicles and 340,000 engines. The plant location is feasible from a logistics perspective due to its proximity to Chennai port which is 50 kilometres away. It is located 74 kilometres from Ennore port and is easily accessible to Bengaluru.
Stalin secures another big deal for TN
On Monday, Stalin signed deals worth over Rs 2,600 crore with Jabil, a leading electronics manufacturing service 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. Additionally, deals worth Rs 850 crore with three US companies have also been signed.
The focus on renewed investment opportunities for Tamil Nadu comes as the government has set a target to reach a $1 trillion economy by 2030.
First Published: Sep 11 2024 | 11:22 AM IS