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Ford denies being in talks with Tamil Nadu govt for EV unit in Chennai

The talks are said to have started after the government approved Ford's proposal for manufacturing and exporting EVs as part of the Rs 25,938-crore production-linked incentive (PLI) scheme in February

Shine Jacob Chennai

2 min read Last Updated : Apr 07 2022 | 6:05 AM IST

Over six months after Ford India announced the shutdown of its manufacturing unit near Chennai, the company is said to be in talks with the Tamil Nadu government over a possible return to the same unit as part of its electric vehicle (EV) roadmap.

The talks are said to have started after the government approved Ford’s proposal for manufacturing and exporting EVs as part of the Rs 25,938-crore production-linked incentive (PLI) scheme in February.

Tamil Nadu is now hopeful that Ford, which had announced the closure of its manufacturing units at Maraimalai Nagar in Tamil Nadu and Sanand in Gujarat on September 9, may repurpose its Chennai plant for EVs.

A source told Business Standard that talks were held, especially after discussions between Tata Motors and Tamil Nadu for taking over the facility did not take off as expected. Tamil Nadu was betting big on EVs, with the state even extending its talks with players like Tesla. When asked about the current round of talks with Ford India, a company spokesperson termed it as “speculative and imaginary”.

In October and December, Tamil Nadu Chief Minister M K Stalin had held a couple of rounds of talks with key Tata Motors officials, including Group Chairman N Chandrasekaran and Executive Director Girish Wagh. However, it chose Sanand over Chennai, according to sources. A spokesperson for Tata Motors also refused to comment on the development, terming it as “market speculation”.

Before the exit, Ford India was also in talks with companies like Ola and Mahindra & Mahindra for contract manufacturing or for the sale of both factories. After the announcement of the PLI scheme, Ford India had said it was exploring the possibility of using a plant in India as an export base for EV manufacturing.

If Ford India decides to use the Chennai unit for EVs, the unit may need to undergo re-tooling and other technical changes to manufacture EVs as the unit was so far being used for producing only internal-combustion engine (ICE) models.