Ford Delays Return to India: What This Means for the Future – Latest Updates from The Times of India

Is Ford’s return to India in doubt? The American carmaker was expected to share its detailed plans for India by January. However, sources say the company is reconsidering its strategy and will announce a final decision later this summer.

A senior source mentioned that Ford’s board discussed the matter in January and opted not to make any announcements yet. “There is definitely a delay,” the source said, noting the company is rethinking its approach.

When asked for a comment, a Ford spokesman stated that the company is committed to using its manufacturing plant in Chennai to serve global markets. They thanked the Tamil Nadu government for its ongoing support and promised to share more details about manufacturing timelines soon.

Several factors are causing Ford to slow its return to India. Currently, the political environment in the US is less welcoming towards foreign investments, focusing more on bringing manufacturing back home. Additionally, Ford needs to invest substantially to upgrade its nearly 30-year-old plant in Maraimalainagar.

Experts estimate that reworking the Chennai plant for electric vehicle (EV) production could cost between $100 million and $300 million. This represents a significant financial commitment that Ford may not be ready to announce right now.

Last September, Ford indicated its intention to return to India, stating it had filed a Letter of Intent with the Tamil Nadu government to use the Maraimalainagar plant for export manufacturing. Kay Hart, president of Ford’s International Markets Group, highlighted this move as part of their ongoing commitment to India, aiming to leverage local manufacturing expertise for new global markets.

At that time, officials from the Tamil Nadu government noted that Ford needed time to finalize its plans due to volatility in the EV market. Initially expected to make a decision by December, that uncertainty has extended further, suggesting the company will take more time to decide on its return to India.

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