Ford eyes electric vehicle production in Tamil Nadu to re-enter Indian market: Industries Minister T.R.B. Rajaa

Ford Motor Co. is exploring the possibility of producing electric vehicles (EVs) at its plant in Tamil Nadu, southern India, as part of its strategy to re-enter the Indian car market. The automaker is in discussions with the Tamil Nadu state government, three years after announcing the closure of its local manufacturing operations, reported Bloomberg.

While the final decision on what models Ford will manufacture in India is still pending, Tamil Nadu’s Industries Minister T.R.B. Rajaa hinted in an interview with the wire agency that EV production is likely. Rajaa pointed out that recent investors in the state have focused on electric vehicle lines, noting that "the ecosystem is ripe" for such ventures. The talks between Ford and the state government are reportedly aligned with this trend.

Ford's renewed interest comes as India ramps up efforts to bolster its electric vehicle industry. In September, Ford sent a letter of intent to the Tamil Nadu government, outlining plans to use its Chennai facility for export-oriented manufacturing, adds the report. This move positions Ford among several domestic and international automakers, including Tata Motors and Vietnamese firm VinFast, that are investing heavily in Tamil Nadu’s burgeoning EV manufacturing sector.

India’s federal government has also taken steps to attract foreign investment in the electric vehicle space. Earlier this year, it reduced import duties for automakers willing to invest at least $500 million in the country. Tamil Nadu has emerged as a key player in India’s EV push, with its strategic location and growing industrial base appealing to global manufacturers.

Ford, which currently employs 12,000 workers in global operations across Tamil Nadu, expects to increase its workforce by around 3,000 over the next three years, according to a recent company statement. The potential expansion underscores Ford’s commitment to leveraging India’s growing automotive market, particularly in the rapidly expanding EV segment.

(With inputs from Bloomberg)