Tamil Nadu Chief Minister M K Stalin announced on Wednesday that he held significant talks with Ford Motor to explore the possibility of producing vehicles for export. In a post on X (formerly Twitter), Stalin stated, ‘We explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu, aiming once again to ‘Make in Tamil Nadu for the world’
The U.S. automaker had exited India in 2021 after struggling to gain market share, which was dominated by Asian competitors. Ford is still considering options for its Chennai plant, the company confirmed in a statement.
Ford ceased production in India after more than two decades of unprofitability, holding less than 2% of the passenger vehicle market. In 2022, the company explored using its Indian plant to export electric vehicles, but the plan fell through after Ford and Mahindra & Mahindra couldn’t finalize a joint venture. In December 2023, Business Standard reported that Ford was reassessing its return to the Indian market while reviewing the future of its Chennai facility.
Ford’s Maraimalai Nagar plant in Chennai, which spans 350 acres, had an annual production capacity of 200,000 vehicles and 340,000 engines. Its proximity to the Chennai port (50 km away) and Ennore port (74 km away), along with easy access to Bengaluru, made it a strategically favorable location.
On Monday, Stalin signed investment deals worth over ₹2,600 crore with Jabil, a leading electronics manufacturing service provider, and Rockwell Automation, expected to generate 5,365 jobs. Additional agreements worth ₹850 crore were signed with three U.S. companies. These investment initiatives are part of Tamil Nadu’s larger goal to become a $1 trillion economy by 2030.
Tamil Nadu Chief Minister M K Stalin’s discussions with Ford Motor represent a strategic move to revive and potentially expand the state’s automotive manufacturing capabilities. The potential return of Ford to Tamil Nadu for export vehicle production would not only leverage the existing infrastructure but also contribute significantly to the local economy. This is part of a broader vision to bolster Tamil Nadu’s industrial landscape and make it a global manufacturing hub.
In addition to these discussions, Stalin’s successful signing of deals worth ₹2,600 crore with Jabil and Rockwell Automation highlights Tamil Nadu’s commitment to attracting major investments and creating thousands of jobs. This aligns with the state’s ambitious goal of reaching a $1 trillion economy by 2030, demonstrating its proactive approach to economic development.
As Tamil Nadu works to attract and retain global investors like Ford, ensuring regulatory compliance and smooth business operations is crucial. Vakilsearch offers specialized services to support businesses in navigating local regulations, managing company registrations, and ensuring adherence to legal requirements. With our expert assistance, companies can focus on their core operations while we handle the complexities of compliance and legal documentation. Partner with Vakilsearch to streamline your business processes and make the most of Tamil Nadu’s growing investment opportunities.
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