Chennai, Dec 21: Ford Motor Co that announced its exit from India in September 2021 has reportedly abandoned its plans to sell its Tamil Nadu plant, its sole factory site in the country. This move comes after Ford finalised a deal with Sajjan Jindal-led JSW Group recently, fuelling speculations that the US automakers might be considering re-entering the Indian market. According to a report in The Economic Times, a Ford spokesperson said that the company continues to explore their alternatives for the Chennai manufacturing facility but have nothing else to share.
The Chennai plant has been on the block since Ford’s exit, a result of its mounting losses aggravated by the slowdown that gripped the passenger vehicle market due to the COVID-19 pandemic.
Jindal’s JSW had announced the purchase of a 35 per cent stake in a joint venture with SAIC, that runs MG Motors India, to buy the Ford plant for around $100 million. According to the report that quotes a source, Ford unexpectedly called off the deal and is reportedly no longer looking to sell the Chennai factory.
The Chennai plant was supposed to facilitate JSW’s planned entry into EVs, the report added.
