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Ford India's manufacturing unit in Maraimalai Nagar, located near Chennai, was once a prominent player in the country's automobile industry. However, in a surprising turn of events on September 9, 2021, Ford made the decision to withdraw from India and cease all vehicle manufacturing operations. Now, the Tamil Nadu government is contemplating innovative ways to utilize the plant's land, although any proposed plan would require approval from the state government.
The American automotive giant still retains ownership of the land, and the Tamil Nadu State Industries Minister, TRB Rajaa, expressed intentions to explore alternative uses for the property that would benefit the public and contribute to job creation and revenue generation. While he did not disclose specific details about the plan, Rajaa acknowledged the possibility of another major manufacturer taking over the unit and confirmed ongoing discussions with various automobile manufacturers, including a prominent global brand.
At the time of its shutdown, the Maraimalai Nagar plant employed more than 2,500 workers and had an annual manufacturing capacity of over 150,000 cars on a two-shift basis, which could be increased to 200,000 with three shifts. Ford's decision to close its India units was prompted by declining volumes and an accumulated loss of approximately $2 billion. The last vehicle rolled out of the Tamil Nadu unit in July 2022.
Given the prime location of the plant, the state government sees numerous possibilities for its future use. Rajaa emphasized that Ford would also be involved in the decision-making process, as it is their property. The government has been in discussions with potential stakeholders, including Tata Motors, Ola Electric, and Mahindra & Mahindra, over the past two years. However, no agreement has materialized thus far.
It is worth noting that Tata Motors, through its subsidiary Tata Passenger Electric Mobility, acquired Ford India's Sanand plant in Gujarat in August 2022 in a deal worth Rs. 725 crore.
In the wake of the production-linked scheme announcement, Ford India had previously expressed interest in utilizing an Indian plant as an export base for electric vehicle (EV) manufacturing. However, the company eventually decided not to pursue that particular plan.
As the fate of the Maraimalai Nagar plant hangs in the balance, the Tamil Nadu government remains committed to finding a suitable solution that maximizes the land's potential, promotes economic growth, and benefits the local population. With ongoing discussions and the involvement of major players in the automotive industry, the future of the iconic Ford manufacturing unit in Maraimalai Nagar is eagerly awaited.
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