KEY HIGHLIGHTS
- Ford will begin manufacturing for exports at its Chennai plant
- A possible return to domestic sales is being studied
- Ford continues to produce engines and provide after sales support
- The car maker had ceased domestic sales in 2021
This may not quite be the comeback Ford fans in India were hoping for, but it is still a step. The American car maker will begin operations at its Chennai plant once again, but for export markets. This announcement has come following a meeting between the leadership at Ford India and the Chief Minister of the Government of Tamil Nadu.
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So What Is Ford India's New Plan?
As part of the Ford+ growth plan, Ford India will begin re-tooling its existing Chennai plant, in order to meet the specific requirements to produce export models. The carmaker is yet to provide details on what models will be manufactured and the markets that it plans to export them to. However, it will specifically begin exporting to new and emerging global markets.
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As for domestic sales, the American car maker has not commented anything yet, but reports suggest that a possible CBU plan is being studied at the moment. It had ceased domestic operations following its restructuring announcement back in 2021. Having sold its Sanand plant to Tata Motors in 2022, it continues to produce engines for global operations on mutually-agreed terms.
The carmaker also continues to provide aftersales support to its existing customers, and also retains its presence on social media.
Verdict
While Ford India seems to enjoy a certain social media fan-following and they miss its presence, the carmaker saw more business sense in utilizing its Chennai plant for export models, which could be a great measure in achieving economies of scale. Since India benefits from high levels of localization, exporting to new and global markets will help Ford achieve some profits.
