Ford Motor Co. is in discussions to manufacture electric vehicles (EVs) at its plant in Tamil Nadu, India, potentially marking its return to the country’s automotive market. This follows the company’s decision to halt local production three years ago.
Tamil Nadu Industries Minister Rajaa confirmed ongoing discussions with Ford, stating that while the final decision on production is pending, the trend suggests a focus on EVs. Recent investments in the state have largely involved electric vehicle lines, according to the minister.
Ford’s interest aligns with broader trends in India, where both domestic and foreign automakers are increasing their focus on EV production. Companies such as Tata Motors and VinFast Auto have committed significant investments in Tamil Nadu, which has positioned itself as a key manufacturing hub for electric vehicles.
Ford submitted a letter of intent to the Tamil Nadu state government in September, signaling its plans to repurpose its Chennai plant for export purposes. This move comes in the wake of India’s efforts to bolster its EV industry. The federal government recently reduced import taxes for foreign automakers willing to invest a minimum of $500 million in local operations.
Currently, Ford employs 12,000 people in global business operations in Tamil Nadu, with plans to increase this workforce by 3,000 over the next three years.