Ford May Consider Re-Entry Into India As Deal With JSW Fell Through

Ford could consider making a comeback to India as the deal to sell its plant in Tamil Nadu to JSW fails to materialise

In October 2019, Ford penned a deal with Mahindra for multiple collaborative efforts across different fields and it was considered to be a milestone event in the brand’s history in India. The American auto major stood the test of time as the market evolved since its operations began in late 1995 and export was a primary part of its business.

Fast forwarding just over a year, Ford exited the proposed joint venture with Mahindra as it decided to run on its own amidst spiralling losses. The company appeared to have reached a breaking point and after denying speculations that it would not quit India, it did just that a few months later as an official statement was released in September 2021.

It was a big blow for the Indian market and Ford as well. The sales exist was part of the global restructuring process the brand underwent ahead of the transition towards electrification. Considering the steady growth in the domestic economy and the auto market in general, Ford missed a big opportunity as it had all the tools laid out for years with a loyal customer base.

Back then, Ford was one of the biggest carmakers with a huge production base but the lack of utilisation did hurt big time. In August 2022, Ford sold its Sanand plant to Tata Motors and a month later announced a severance package for employees of its Maraimalai Nagar plant in Tamil Nadu after a long-standing disagreement with the Union.

Several brands, automotive and otherwise, have been linked with buying the 350-acre plant near Chennai which has an annual production capacity of 1.5 lakh cars and can roll out 3.4 lakh engines per annum. However, Ford has now backtracked from selling its manufacturing unit to JSW Group. Recently, JSW acquired a 35 per cent stake in a Joint Venture with SAIC.

It reached an agreement to purchase Ford’s plant for around 100 million USD but the plans fell through. This mounts the rumours that the Detroit-based brand could consider making a comeback. Previously, Ford was said to return in limited capacity by selling high-end CBU models but it has not materialised either.