Ford Motor Co. is reportedly in discussions to produce electric vehicles (EVs) at its plant in Tamil Nadu, marking a potential return to the world's third-largest car market, according to a report by Bloomberg. This comes three years after the automaker announced it would cease local production.
Tamil Nadu Industries Minister T.R.B. Rajaa confirmed that Ford has not yet finalised what it will manufacture in India, but suggested that EVs are a likely option. "If you go by trend, the investors that come into Tamil Nadu over the past few years have brought their EV lines," Rajaa told Bloomberg TV, adding that the state's ecosystem is well-prepared for such developments.
The talks follow a meeting between Ford leadership and Tamil Nadu Chief Minister M.K. Stalin during his recent visit to the United States. Ford’s International Markets Group President, Kay Hart, highlighted the company's commitment to India, noting that Tamil Nadu's manufacturing capabilities would help Ford target global markets.
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Ford's potential return comes as domestic and foreign automakers, including Tata Motors Ltd. and Vietnam's VinFast Auto Ltd., are investing heavily in Tamil Nadu to establish EV production facilities. In mid-September, Ford indicated plans to use its Chennai plant for exports by submitting a letter of intent to the Tamil Nadu state government.
The move aligns with India’s broader initiative to ramp up EV manufacturing. Earlier this year, the federal government reduced import taxes for foreign automakers who commit to investing $500 million or more in the country. Tamil Nadu is positioning itself as a hub for EV production, playing a central role in the nation’s strategy to boost the industry.
Ford currently employs 12,000 people in its global business operations in Tamil Nadu. The company expects to add up to 3,000 more jobs over the next three years, according to a recent statement.
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