Ford plans to make EVs at TN plant, seeking re-entry into Indian market

Ford is the latest to join domestic and foreign carmakers, from Tata Motors to Vietnamese automaker VinFast Auto

By Menaka Doshi and Preeti Soni

Ford Motor Co. is discussing plans to manufacture electric vehicles at its southern India plant in Tamil Nadu for re-entering the world’s third-largest car market three years after announcing shutting its local factories.

Ford is yet to decide on what it will manufacture in India, Tamil Nadu Industries Minister T.R.B. Rajaa said in an interview to Bloomberg TV. However, he hinted that it could be electric vehicles.

“If you go by trend, the investors that come into Tamil Nadu over the past few years have brought their EV lines,” Rajaa said. “They do know the ecosystem is ripe and the discussions are also on those lines.”

Ford is the latest to join domestic and foreign carmakers — from Tata Motors Ltd. to Vietnamese automaker VinFast Auto Ltd. — who are pouring billions to set up manufacturing plants in Tamil Nadu. Ford announced plans to use its plant in Chennai for exports in mid-September after sending a letter of intent to the Tamil Nadu state government. 

The development follows India’s plans to boost EV manufacturing in the world’s most populous nation. Earlier this year, the federal government lowered import taxes for foreign carmakers who pledged to invest $500 million in the country. Tamil Nadu has taken center stage by presenting itself as a manufacturing destination for EVs in India. 

Ford currently employs 12,000 people in global business operations in Tamil Nadu, a number expected to grow by as much as 3,000 jobs within the next three years, according to a company statement last month.