Ford drives out of deal to sell Tamil Nadu plant to JSW
Ford Motor Co. unexpectedly abandoned plans to sell its Tamil Nadu plant, its sole remaining factory site in the country, after finalising a deal with the Sajjan Jindal-led JSW Group recently, said people with knowledge of the matter.
The decision fuelled speculation that the US company may be considering a re-entry into the world’s third auto largest market after exiting over two years ago.
A Ford India spokesperson said in an email: “We continue to explore alternatives for our manufacturing facility in Chennai and have nothing further to share.” JSW declined to comment.
The company’s Maraimalai Nagar-based plant has been on the block after Ford got out of India amid mounting losses and the slowdown that gripped the passenger vehicle market after the Covid-19 pandemic in September 2021.
JSW, which recently announced the purchase of a 35% stake in a joint venture with SAIC, had finalised an agreement to buy the Ford plant for around $100 million.
But, earlier this month, Ford “called off the deal and is no longer looking to sell the factory,” said one of the persons privy to the ongoing discussions. SAIC runs MG Motors India.
Other contenders Vietnamese e-carmaker VinFast, which is in the process of firming up its India entry strategy and is looking for a manufacturing footprint, was another company said to have been in the fray for the Ford plant.
Mahindra and Mahindra had also expressed interest but did not pursue the opportunity with the same vigour.
Strategically located near Chennai port and spread across 350 acres, the Ford plant had an annual capacity of 150,000 cars and almost 340,000 engines. It’s been shut since July 2022.
In January, Tata Motors acquired Ford’s Sanand plant in Gujarat through its
