Ford India Re-Entry:
American car manufacturer Ford is once again making headlines with news of its re-entry into India. The company is planning to reopen its plant in the southern state of Tamil Nadu for export purposes. A recent meeting between the Chief Minister of Tamil Nadu and Ford officials has further fueled these discussions, raising expectations that Ford may re-enter the Indian market after nearly three years.
Discussions with State Government Begin:
Recently, Tamil Nadu Chief Minister M.K. Stalin visited the USA and met with Ford officials to discuss the reopening of the company's plant in India. According to a Reuters report, Ford has also sent a letter to the state government regarding this matter.
Following the meeting, M.K. Stalin shared the news on the social networking site 'X' (formerly Twitter), stating, "Had a very fruitful discussion with the Ford Motors team! We are exploring the feasibility of renewing Ford's three-decade-old partnership with Tamil Nadu to restart manufacturing in the state for the global market."
In his post, Stalin shared several pictures, including a handshake with a Ford official and another where he presented a piece of artwork to the Ford team. During his 17-day trip to the USA, Stalin was actively seeking foreign investment for his state.
What the Company Says:
In a statement, Ford said, "This move will repurpose the plant to focus on manufacturing for export to global markets." The company mentioned that specific details about the cars to be manufactured at this plant will be announced later. Before ceasing operations in India, Ford manufactured cars and engines at this plant in Chennai, Tamil Nadu.
Will Ford Cars be Launched in India?
Following discussions between Ford and the Tamil Nadu government, speculations are rife that Ford might re-enter the Indian market. However, there seems to be a twist. As Stalin mentioned in his post, "We are considering restarting manufacturing in Tamil Nadu for the global market." This hints that the company may use this plant to manufacture vehicles for export rather than for the domestic market.
As of now, the company has not provided any information on launching any vehicles in India. The industry has been abuzz with the possibility of Ford bringing back its Ford Endeavour to the Indian market.
Ford's Journey in India:
Ford's relationship with India dates back nearly 97 years. Ford India Private Limited began production in 1926 as a subsidiary of Ford Motor Company of Canada. During this time, the company introduced models like the Model A to the Indian market. However, due to strict import restrictions, Ford India had to halt production in May 1953. In 1995, Ford re-entered the Indian market by forming a 51-49% joint venture with Mahindra & Mahindra, named Mahindra Ford India Limited.
Ford's First Car in India:
At this time, Ford introduced its first car, the Escort, in collaboration with Mahindra. The production of this sedan continued until 2001. The Escort was specifically designed for the Indian market and played a crucial role in establishing the American brand in India. The car was equipped with a 1.8-liter diesel and a 1.6-liter petrol engine. It came with features like power steering, powered front windows, ORVMs, air conditioning, a music system, and much more, which were considered luxury at that time.
Subsequently, Ford launched various models such as the Ikon in 1999, Mondeo in 2001, Endeavour SUV in 2003, Fusion and Fiesta Classic sedan in 2004-5, and the Figo hatchback for the mass market in 2010. In 2013, the company introduced the sub-compact SUV EcoSport, which inspired many other manufacturers to explore this new segment, resulting in models like Nexon, Brezza, Creta, and XUV300 in the Indian market.
Ford's Last Car in India:
On July 20, 2022, Ford shut down the production line at its plant in Sholingnallur, Chennai, rolling out its last car, a white EcoSport. This marked the end of Ford's car production story in India. Several factors contributed to Ford's failure in the Indian market, one of the major reasons being its attempt to establish itself as a premium brand, distancing itself from the mass market. When Ford entered India, there was a high demand for affordable and low-budget cars, dominated by models like the Maruti 800.