Ford cancels Chennai plant sale deal to JSW group

The JSW Group recently finalized an agreement to buy the Ford India factory for around US$ 100 million.

According to a media report, Ford has cancelled its plans to sell its Tamil Nadu plant, after finalizing a deal with the JSW Group. The move has also raised speculations about the brand’s return to the Indian market.

The Sajjan Jindal-led JSW Group recently finalized an agreement to buy the Ford India factory for around US$ 100 million. The company has purchased a 35% stake in a joint venture with China-based SAIC. As part of the JV, the two companies plan to augment local sourcing, improve charging infrastructure and expand production capacity.

Ford had been looking for buyers for its manufacturing unit at Maraimalai Nagar ever since it announced its exit from the Indian market. The plant has been shut since July 2022. When asked about the recent developments, a Ford India spokesperson said that the company continues to explore alternatives for its manufacturing facility in Chennai.

Ford India’s Chennai plant is spread over 350 acres and has an annual production capacity of 1,50,000 cars. The factory also produces around 3,40,000 engines.

Some of the other brands who have expressed interest in purchasing the factory are Vietnam-based EV maker VinFast and Mahindra.

Source: ET Auto