American automobile giant Ford is going to return to India once again. However, this time the company will not manufacture its cars, but will focus on the production of engines and its parts. The special thing is that Ford will restart its old Chennai plant and will make engines and export them. According to reports, the company has finalized this planning and it will be officially announced soon.
Ford’s business was closed in 2021
Ford entered India in 1995 and maintained its hold in the Indian market for a long time. However, in September 2021, the company suddenly announced the closure of its Indian operations. Since then, there was speculation whether Ford would return to the Indian market again or not. Now news is coming that Ford is preparing to produce and export engines and automobile parts in India through its Chennai plant.
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Production will start again in Chennai plant
This Ford plant located in Maraimalai near Chennai was closed since 2022. But now plans are being made to restart it. However, till some time ago there was speculation that Ford could postpone its return to India due to reasons like the local manufacturing policy of the Trump government in the US and import duty in India. But according to sources in the Government of India, this plan is fully on track and will be implemented soon.
Ford had tremendous production capacity
Ford had good infrastructure in India. The Chennai plant had a production capacity of 2 lakh vehicles, while the Sanand plant in Gujarat had the capacity to produce 2.4 lakh vehicles. Apart from this, the Sanand plant also had the capacity to manufacture 2.7 lakh engines.
The Chennai plant used to manufacture SUVs like Ford EcoSport and Endeavor, while the Sanand plant used to produce hatchback cars like Ford Aspire sedan and Figo Freestyle. But in 2021, the company shut down its operations, ending its presence in the Indian market.
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How will Ford’s return affect the Indian market
Although Ford’s return to India will be limited to engine manufacturing and exports, it is a positive sign for India’s auto sector. This will boost the manufacturing sector in India and will also create new employment opportunities. However, Indian customers still hope that Ford will relaunch its popular models like Endeavor and EcoSport. But at present the company has not made any plans to sell its cars again in the Indian market.