Ford Motor Company, having announced its Abandons Plan from India back in September 2021, has reportedly scrapped its intentions to sell off its sole manufacturing facility in the country located in Tamil Nadu. This decision emerges following recent developments in which Ford had supposedly finalized a deal with JSW Group, led by Sajjan Jindal. Such actions have sparked speculation that Ford might be reconsidering a return to the Indian market.

As per media reports, a spokesperson from Ford mentioned that the company is still exploring options for its manufacturing plant in Chennai but currently has no further details to disclose.

The Chennai facility had been up for sale following Ford's exit, a move prompted by escalating losses compounded by the slowdown in the passenger vehicle market due to the COVID-19 pandemic.

JSW, under Jindal's leadership, had previously announced a plan to acquire a 35% stake in a joint venture with SAIC, the entity operating MG Motors India, aiming to purchase the Ford plant at an approximate cost of $100 million. However, according to a source cited in the report, Ford unexpectedly terminated the deal and seemingly halted plans to offload the Chennai factory. The report also highlighted the intended use of the Chennai plant by JSW for its foray into electric vehicles (EVs).

Spread across 350 acres and capable of producing 150,000 cars and nearly 340,000 engines annually, the Tamil Nadu plant has remained closed since July 2022.

In a separate move, Ford's Sanand plant in Gujarat was acquired by Tata Passenger Electric Mobility, a subsidiary of Tata Motors, in January for Rs 725.7 crore, aligning with the conglomerate's ambitions to bolster EV manufacturing.

Ford had incurred operating losses exceeding $2 billion over a decade in India. However, the Indian automobile market has experienced a significant resurgence post-pandemic.

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