Ford held talks with Indian state to restart production for exports, minister says

BENGALURU (Reuters) -Ford Motor has held talks with India’s southern state of Tamil Nadu to explore producing vehicles for exports, Tamil Nadu’s chief minister M.K. Stalin said on Wednesday.

The U.S. automaker had stopped making cars in India three years ago after struggling to boost sales in a market dominated by Asian rivals.

“Had a very engaging discussion with the team from Ford (NYSE:F) Motors. Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world,” M.K. Stalin said in a post on X.

Ford continues to explore suitable alternatives for its plant in Chennai, the automaker said in a statement. Chennai is the capital of Tamil Nadu.

Ford, with two plants in India, had a less than 2% share of the Indian passenger vehicle market when it stopped production, having struggled for more than two decades to turn a profit.

The company said in 2022 it was exploring the possibility of using a plant in India as an export base for EV manufacturing.

The decision to stop production came after Ford and India’s Mahindra & Mahindra failed to finalise a joint venture partnership that would have allowed Ford to continue making cars at a lower cost.