Key highlights
- Ford is reassessing plans for its Tamil Nadu plant
- Export has been hit by Trump’s high tariff charges
- Ford might write off its local production facility
While the internet is full of rumours about Ford returning to India, the facts seem to be the other way around. The US-based brand is now considering whether to continue with its Tamil Nadu-based plant or not. Read below why.
Also read: Over 250 units of the MG Cyberster sold in 2 months
Ford might leave India completely! But why?
As per a latest report published online, Ford is reassessing its plans for utilising the Maraimalai Nagar, Chennai-based plant for future use. The reassessment comes after the US president, Donald Trump, imposed hefty export tariffs on India.
The US-based carmaker had earlier stopped manufacturing cars in 2022. The brand also closed its retail business in India and decided to shift its focus to the South Asian market, which was more yielding in terms of growth and profits.
Speaking of the current state, the Chennai-based plant has been under consideration to be utilised for manufacturing engines for the global models. However, the increased tariffs mean that the cost-benefit ratio will not be viable.
Ford’s official statement about these latest reports is that it is in consistent touch with the Tamil Nadu government and officials, and the brand is still hooked on its 2024 announcement of utilising the plant for export markets.
