Ford's India Return Plans Confirmed with 6 New Cars !! | DECODED

Summary

Ford is making a comeback in India after previously ceasing operations in 2021. They plan to locally manufacture cars in their Chennai plant, initially for export to countries like Thailand and the Middle East. Once profitable, Ford intends to gradually sell these cars within India. This move is attributed to the efforts of Tamil Nadu's Chief Minister, M.K. Stalin, who secured a letter of intent from Ford to restart production. Expected models include the Ford Ranger, Mustang Mach-E, and Everest, though prices will likely be on the higher side.

Takeaways

• 🚗 Ford has officially confirmed its return to India, planning to manufacture cars locally and export them abroad before eventually selling them in the domestic market.
• 🏭 Ford's previous manufacturing plants in Chennai and Sanand had a combined production capacity of 4.5 lakh cars and 6 lakh engines, but sales did not meet expectations, leading to underutilized capacity.
• 📉 Ford faced losses in India due to unmet expectations of market growth, with the Indian car market growing at half the expected rate between 2010 and 2022.
• 🤝 Tamil Nadu CM M.K. Stalin played a crucial role in Ford's comeback by facilitating discussions and signing an MOU during his USA investment tour.
• 🔄 Ford's strategy involves initially producing cars in India for export to emerging markets like Thailand and the Middle East, with plans to re-enter the Indian market once the factory becomes profitable.
• 📊 Ford will initially manufacture 6 different cars in India, including the Ford Ranger, Mustang Mach-E, Territory, and Everest, targeting higher-end segments rather than mass-market models.
• 🚙 Ford's planned cars for the Indian market, like the Mustang Mach-E and Everest, will cater to premium buyers, with features such as advanced engines, high-tech interiors, and competitive pricing.
• 💼 The PLI (Production Linked Incentive) scheme and Tamil Nadu government support have been instrumental in Ford's decision to restart operations at their Chennai plant.
• 🌍 Ford will utilize its Chennai plant to manufacture engines and vehicles primarily for export, gradually exploring opportunities to sell cars in India.
• 📈 Ford's return could create significant competition in the Indian automotive market, challenging existing manufacturers and potentially reviving consumer interest in their brand.

Q & A

What is Ford's strategy for re-entering the Indian market?

Ford plans to manufacture cars locally in India, initially for export to other countries. Once their Indian factory becomes profitable, they may begin selling cars locally in India.

Which state government played a key role in Ford's comeback in India?

The government of Tamil Nadu, led by CM M.K. Stalin, played a key role in facilitating Ford’s return by signing a Memorandum of Understanding (MOU) with the company.

How many cars and engines could Ford produce in its Indian factories prior to their exit?

Ford had a combined production capacity of 4.5 lakh cars and 6 lakh engines annually from its factories in Chennai and Sanand.

Why did Ford originally exit the Indian market in 2021?

Ford left India due to underutilization of its production capacity and lower-than-expected growth in the Indian car market, which led to financial losses of around ₹17,000 crore.

What was the average number of cars Ford sold annually in India before its exit?

Ford sold around 70,000 to 1 lakh cars annually in India while exporting about 1.5 lakh cars, making a total of 2.5 lakh cars produced annually.

What key developments suggest Ford’s re-entry into the Indian market?

Ford's patent filings for vehicles like the Mustang Mach-E, Ranger, and Territory in India, along with their participation in the Production Linked Incentive (PLI) scheme, indicate a strong intent to re-enter the market.

What role did M.K. Stalin’s US tour play in Ford’s return?

During his investment tour in the USA, M.K. Stalin met with Ford officials and signed an MOU, securing Ford’s commitment to restart operations in Tamil Nadu.

What types of vehicles is Ford expected to manufacture in India post-re-entry?

Ford is expected to manufacture vehicles like the Ranger pickup truck, Mustang Mach-E electric crossover, Territory SUV, and the Everest SUV in India.

Will Ford sell affordable, mass-market cars in India after its return?

Initially, Ford is not expected to sell mass-market cars. They are likely to focus on higher-end vehicles like the Everest SUV and the Mustang Mach-E.

What challenges did Ford face due to the unutilized production capacity in India?

Ford had a production capacity of 4.5 lakh cars but was only producing 2.5 lakh cars annually. The remaining unutilized capacity contributed to significant financial losses.

Outlines

00:00

🚗 Ford's Re-Entry into the Indian Market

Ford has officially confirmed its return to India, planning to restart local manufacturing for export and eventually selling cars domestically once the factory becomes profitable. The Tamil Nadu CM, M.K. Stalin, played a crucial role in facilitating Ford's comeback by engaging with the company. Ford's past production capacity in India was significant, but due to unmet sales expectations, the brand faced substantial losses and ceased operations in 2021. Now, Ford is set to reopen its Chennai plant, with plans to make it a hub for car exports, which could later lead to domestic sales in India.

05:01

🌍 Tamil Nadu's Ambitious Global Investments

M.K. Stalin's recent USA investment tour resulted in several major MOUs with global companies, promising thousands of high-profile and small-level jobs in Tamil Nadu. The MOUs included partnerships with companies like PayPal, Yield Engineering Systems, Microchip, and Nokia, among others. This strategic move aims to boost employment and technological development in Tamil Nadu, showcasing Stalin's dedication to transforming the state's industrial landscape and attracting international business. His efforts also contributed to Ford's decision to potentially revive its operations in India.

10:02

🚙 Ford's Strategic Production and Export Plan

Ford plans to leverage its existing production capacity in India to manufacture cars locally for export to emerging markets like Thailand and the Middle East. As the factory becomes profitable through these exports, Ford may gradually introduce its vehicles in the Indian market, focusing on higher-end models rather than mass-market cars. The initial focus will likely be on models like the Ford Ranger, Mustang Mach-E, and Everest, with potential future production of the Mustang and other vehicles. This strategy aligns with Ford's broader global business objectives while offering Indian consumers access to premium vehicles.

Keywords

💡Ford's comeback

Ford's comeback refers to the company's return to the Indian automotive market after ceasing operations in 2021. The video emphasizes how Ford is planning to reopen its plant in Tamil Nadu for local production and export, potentially re-entering the Indian market after initially exiting due to unfulfilled sales expectations.

💡Tamil Nadu CM M.K. Stalin

M.K. Stalin, the Chief Minister of Tamil Nadu, played a pivotal role in Ford's decision to return to India. His proactive efforts, including meetings with Ford's international executives during a USA investment tour, were instrumental in Ford's plans to utilize its Chennai plant again. Stalin's actions are portrayed as essential for reviving Ford's operations in India.

💡Production capacity

Production capacity refers to the number of vehicles Ford could manufacture in its Indian plants. The video mentions that Ford had a total capacity of 4.5 lakh cars across its Chennai and Sanand factories but struggled to fully utilize this, producing only around 2.5 lakh cars, leading to financial losses. The unused capacity is a critical factor in Ford’s business strategy moving forward.

💡Exports

Ford's export strategy involves producing cars in India for sale in other countries, particularly in Asian and Middle Eastern markets. This was one of Ford’s profitable operations, as they exported about 1.5 lakh cars annually from India, and this strategy remains central to their re-entry plan, as they will initially focus on exports before selling cars locally.

💡PLI scheme

The Production Linked Incentive (PLI) scheme is an Indian government initiative that offers incentives to companies for enhancing local production. Ford’s application to this scheme indicates its interest in reviving production in India. Although Ford later withdrew its application, the video suggests that the company’s initial involvement in the PLI scheme fueled speculations about their return.

💡Ford Mustang Mach-E

The Ford Mustang Mach-E is an electric crossover vehicle that the company plans to manufacture locally in India as part of its comeback strategy. The video highlights this as a significant move since the Mustang brand holds great appeal in India, and local production of the Mach-E could make the car more affordable and attractive to Indian buyers.

💡Chennai plant

Ford's Chennai plant is a central focus in their return to India. Previously used for manufacturing cars and engines, this facility will be repurposed for local production and exports under Ford's new strategy. The video discusses how the plant had remained underutilized since 2022, with a significant portion of its capacity lying dormant.

💡MOU (Memorandum of Understanding)

An MOU is a formal agreement between two or more parties. In the video, Ford signed an MOU with the Tamil Nadu government, which marks a commitment to restart operations at its Chennai plant. This agreement is crucial in formalizing Ford’s intentions to resume production in India and signals the company’s long-term plans.

💡SUV segment

The SUV segment refers to the category of Sports Utility Vehicles that Ford plans to focus on in India. The video mentions that Ford will produce models like the Ford Everest and other SUVs, which cater to higher-end buyers. This strategy suggests that Ford is targeting a more premium market rather than competing in the mass-market segment.

💡Ranger and Everest

Ranger and Everest are two of Ford's popular vehicle models that the company plans to produce locally in India. The Ranger is a pickup truck, and the Everest is an SUV, both of which have high demand. Their production in India signals Ford’s intent to cater to the premium SUV and pickup market, with local production potentially making these models more affordable.

Highlights

Ford has officially confirmed its re-entry into India, with plans to make cars locally and export them abroad.

Ford will initially focus on exporting cars from India and later consider selling them in the local market once the factory becomes profitable.

Ford's Chennai and Sanand plants had a combined production capacity of 4.5 lakh cars and 6 lakh engines.

Despite the high production capacity, Ford's yearly sales in India averaged only 70,000 to 1 lakh cars, leading to financial losses.

Ford had hoped India's car market would grow by 10% CAGR between 2010 and 2022, but growth was only half of that, contributing to their exit.

Ford stopped making cars in its Tamil Nadu plant for export in 2022 but continued its engine manufacturing operations.

The Tamil Nadu CM, M.K. Stalin, played a crucial role in Ford's comeback by engaging in discussions during his USA investment tour.

Ford has signed a letter of intent with the Tamil Nadu government to restart operations in their Chennai plant.

Ford’s strategy involves leveraging the unused production capacity of 2 lakh cars in the Chennai plant for exports to emerging Asian markets.

Ford plans to eventually launch its cars in India once the factory is profitable, with expectations of high-end models like the Ford Everest.

The company will focus on six new car models for production in India, including the Ford Ranger, Mustang Mach-E, and the Ford Everest.

Ford Ranger, a pickup truck, has already been homologated in India, with a 2.0-liter bi-turbo diesel engine expected to be locally produced.

Ford plans to produce the Mustang Mach-E, an electric crossover, locally in India, potentially making it more affordable.

Ford Everest, a highly anticipated SUV, could be priced around ₹60-70 lakh in India, competing with models like Toyota Fortuner and Prado.

Ford is optimistic about the profitability of its India operations, banking on both local sales and exports to international markets.

Transcripts

I know, I know that Ford has confirmed its comeback in

India.

I was just waiting for some more information.

But now Ford has officially confirmed that they are going

to take a re-entry in India.

They will make their cars locally in India and export them

abroad.

And when their factory in India becomes profitable, they

will sell their cars locally in India and earn huge profits.

Because of which some car makers in India are going to face

problems.

And Ford is now all set to re-open this plant.

Let's see, hopefully, let's see.

I think the credit for Ford's comeback goes to the CM of

Tamil Nadu, M.K. Stalin.

Who made everything possible.

If you see, when Ford was operating in India, they had two

different factories in India. One in Chennai and one in

Sanand.

In the plant in Chennai, this brand had a production

capacity of 2 lakh cars and 3 lakh engines.

And in the plant in Sanand, this brand had a production

capacity of 2.5 lakh cars and 3 lakh engines.

If you combine this, this brand had a production capacity

of 4.5 lakh cars and 6 lakh engines.

Which is a lot, friends.

But if you look at the yearly sales of this brand in India

in the last decade, and find out its average trend, then

the sales of this brand have hovered between 70,000 to 1

lakh cars. And this brand was exporting 1.5 lakh cars per

year locally from India.

So this brand was selling 1 lakh cars in India.

This brand was exporting 1.5 lakh cars from India and

exporting them abroad.

In total, it became 2.5 lakh cars.

This brand had a production capacity of 4.5 lakh cars.

So the production capacity of 2 lakh cars was still vacant

in this brand.

Which was unutilized.

Because of which this brand was losing in India in selling

every car.

And this brand set up such a big production capacity in

India because they had an expectation that between 2010 and

2022,

India's car market will grow by around 10% CAGR.

Which means that the 3.04 million cars that were sold in

India in the beginning, around 2010, by around 2022, 80

lakh cars will be sold in India in a single year.

But friends, India's car market grew by half of that rate.

So their expectations didn't meet.

They had thought that as soon as the demand for cars will

grow in India, we already have production capacity.

So we will be able to make good cars by using it.

Without any problem.

And the more cars we make, the more profitable we will be.

But friends, cars were not sold in India.

So this brand had to face around 17,000 road losses in

doing all its operations in India.

In September 2021, this brand said goodbye to India.

And sold the vehicle manufacturing unit of its Saranwala

plant to Tata Motors.

But still, this brand was manufacturing engines in its

Saranwala plant.

And in its Tamil Nadu plant, it was manufacturing cars to

export.

And was manufacturing engines to export.

So technically, only 25% of their entire production system

was sold.

The remaining 75% was with them.

After that, in 2022, they stopped manufacturing their cars

in Tamil Nadu plant.

Which they were making for export.

And after that, speculations started coming.

That maybe Ford will sell this plant or Hyundai.

Then it was said that Mahindra is also interested in this.

Then it was said that Tata Motors is also interested in

this.

After this, Ford suddenly said that they don't want to sell

this plant.

They will keep this plant on their own.

And in this year's PLI scheme, Ford also participates.

And they also get a license.

Which increases the speculation.

That is, is Ford going to come back to India?

Is Ford going to come back to India?

Because they are not only selling their plant in India.

And also applying in the PLI scheme.

Which they took back the papers later.

But at least they were applying.

And also, they had said goodbye to India.

But their engine business was still operating in India.

In which this brand was making 500 crore profits in a

single year.

So, it was looking like that maybe Ford will come back to

India.

There is no problem.

It will be fun again.

And we were speculating.

Next year, Ford will patent their Average in India.

And get this car homologated in India.

After this, Ford will get their territory brand name

patented in India.

Which if you don't know about this brand.

It is an MPV type car.

It sells very well.

Then this brand got their Mustang Mach-E brand patented in

India.

Which is an electric crossover of this brand.

Along with this, this brand got a small utility SUV

homologated in India.

Which is looking like a lot of money.

Just like the car which Ford and Mahindra had made in India.

And then never launched it later.

So, friends, there were a lot of new cars.

Which were saying that Ford is never going to come to India.

This can't happen.

They were a little scared.

That maybe it can come.

They are also filing their patents.

There can be some problem.

And then, friends, Tamil Nadu's CM M.K. Stalin goes on a

USA investment tour.

Where he meets the founders or CEOs of big companies.

And compels them to open their factories or offices in

Tamil Nadu.

So that Tamil Nadu and these companies get profit.

And I have a lot of respect for him.

I will tell you why.

Because on the first day of his tour.

He signed a 400 crore MOU with San Francisco's OMIUM.

Under which 500 jobs will be created in Tamil Nadu.

And high profile jobs will be created.

After this, he went to the headquarters of Apple, Google

and Microsoft.

And signed MOU's with all those companies.

After this, he signed a 450 crore MOU with Nokia.

In Nokia's SIPCOT, which is an industrial hub type.

They will develop an R&D center.

Where they will test the technology of 10G, 20G and 25G.

Under which around 100 jobs will be created.

High profile jobs in Tamil Nadu.

And small level jobs will be created.

After this, he signed an MOU with PayPal for an advanced

development center for AIK.

Under which PayPal will create around 1000 jobs.

High profile jobs in Tamil Nadu.

After this, he signed a 150 crore MOU with Yield

Engineering System.

Under which 300 jobs will be created.

He signed an MOU with Microchip, which is a semiconductor

company.

For an R&D center.

Under which 1500 jobs will be created.

And 250 crore investment will be done.

Along with this, he signed an MOU with Applied Materials.

Under which 500 jobs will be created.

And he signed another MOU with Infinix and Elcord.

Under which 700 jobs will be created.

I have a huge respect for this guy.

Within 17 days, he signed so many MOUs and made so many

deals.

Which will create employment generation in Tamil Nadu.

After this, the biggest thing is that he meets the

international business heads of Ford.

Or he meets K-Heart.

And he officially signs an MOU with them.

And takes an LOI.

To restart his business in India.

And then his tweet comes.

Had a very engaging discussion with the team from Ford

Motors.

Exploring the feasibility of renewing Ford's 3 decade

partnership with Tamil Nadu.

To again make in Tamil Nadu for the world.

We want CMs like this.

If all our CMs start thinking like this.

And execute like this.

I think our country can have a Kaya Pallet.

And along with this, Dr. TRB Raja.

Who handles the Ministry of Industrial Government in Tamil

Nadu.

He also tweets after this.

A year of constant interaction and consistent pitches.

Under the guidance of CM Tamil Nadu.

Have resulted today in the return of Ford Motor Company to

Tamil Nadu.

And after this, he uploaded a video on his Twitter.

In which he is sitting in a Ford F-150 Lightning.

And he is saying something in Tamil.

Friends, I obviously don't know Tamil.

So I asked some Carversal Pro.

What does this mean?

Translate and tell me.

They have given me the translation.

I will tell you what it is.

Subscribe to Carversal and hit the bell icon.

To never miss any crazy uploads.

Friends, this means.

Friends, I am joking.

Dr. TRB, don't take it seriously.

I am just joking.

The translation I have is this.

Hello friends.

Due to the efforts of Tamil Nadu CM.

Should we bring back Ford again?

And after this, let's see.

Friends, we were talking for a year.

We didn't even get to say goodbye.

Very very nice friends.

I am really proud of Tamil Nadu.

And after this, friends.

If you don't get a confirmation from here.

Then Keyhart.

Who is the head of Ford's international market group.

She also confirms it on her LinkedIn.

3 days ago.

I am pleased to share that today we are announcing that.

We have submitted a letter of intent.

To the government of Tamil Nadu in India.

Outlining Ford's intention.

To utilize our Chennai plant for manufacturing for export.

The decision follows multiple meetings with the Tamil Nadu

government.

Including one I had last week.

With the honourable CM of the government of Tamil Nadu.

As part of his visit to the United States.

We appreciate their ongoing support.

As we have explored different options for the plant.

So friends, Ford's officials have also confirmed.

Now tell me.

What were you saying?

You are lying.

You are lying.

Ford is not going to come back to India.

Many people will still say.

Bro, Ford will only make cars to export in India.

They are not going to sell their cars in India.

So I will tell you their business strategy.

Why is it going to happen?

In this, friends, you know.

In their Chennai plant.

Their engine part is already being made.

That is, the engine is being exported outside.

And the production capacity of 2 lakh cars.

That is also in halt.

Has not been used for the past two years.

What is the brand going to do now?

The production capacity of 2 lakh cars.

By leveraging this brand.

This brand will make its cars locally in India.

And the emerging Asian market countries.

Will export there.

For example, in Thailand.

Or maybe in China.

Which is not going to happen, I think.

And in the other Middle East etc.

And when this brand's factory becomes profitable.

That is, this brand is exporting cars outside.

And this brand is making a good profit.

By operating this factory.

After that, this brand can slowly launch its cars in India.

Not like this, it will launch very cheap cars.

It will launch very mass market cars.

So their plan is obviously profitable.

Now what to do?

The car that is being made in India.

In this plant.

And is exporting outside.

These cars will be sold in India instead of exporting like

this.

In India, 2-4-10 new dealerships will open.

Their service center is already open.

Great, great, Indians will also enjoy.

And the cars that will be sold in India.

It's not like a very high-scale or high-production level

car.

Such expensive cars will be there.

Which will be of the segment around Ford Everest.

So don't expect cheap cars.

But you will get the car you want.

And it is expected, friends.

The plant that is being made in India.

In this, 6 different cars will be made in India.

Which is my expectation.

In this, first of all.

This brand will make its Ranger in India.

In this plant.

Because this car has been seen being tested many times in

India.

The Ranger brand name.

Ford Motors has also patented it in India.

And its homologation has also been done.

Which is a pickup truck of this brand.

Which is based on Everest.

In which you get the looks of Everest in front.

You get the grill of Black Killer.

You get great lights.

LED.

You get a straight warrant.

You get big alloys in the side.

And you get big doors.

And you get a 2.0 liter bi-turbo diesel engine.

Which comes around 250 horse.

And there is also a V6 option.

Which is a little expensive.

Friends, if this car is made locally in India.

Then its price can be quite sustainable.

But if you see from outside.

If this car comes in the CKD version in India.

Then its going to be a little expensive.

Around 40 lakhs.

which is not a problem at all

After this, this brand will make its Mustang Mach-E locally

in India which is an electric crossover of this brand which

is not selling well in America because you get a 65 kWh

battery in this car and you get a range of around 500 km

and you get a Mustang

look but friends, if this car is made locally in India and

launches at a cheaper price then what is the problem?

Mustang is the brand name, you will get it and since

Mustang is such a big hype in India then we will buy this

car as well

After this, this brand will make its territory locally in

India which is a crossover or SUV which is in the upper

segment of Carens and in the lower segment of Innova Crasht

or Innova High Cross in which you get thin headlights you

get a big grille you

get 19 inch alloys in the side you get a straight roofline

you get a dual screen interior you get a sunroof in the

roof you get seats in the 7 and you get a 1.6 litre turbo

engine which comes at around 150 horsepower so it is

decent, there is no problem

it is going to be above Carens and below High Cross but

friends, it is a very good car, there is no problem after

this, this brand will make Everest in India which is the

most anticipated car of this brand which people will buy in

double price in India

some people were saying that they will not buy an Everest

for 70 lakhs

I think as soon as this car is a hype in India people will

buy this car for 70 lakhs because this car does not travel

with Fortuno it travels with Prado in front of this car,

you get straight looks you get big LED lights and if you

take the titanium version

you get 20 inch keyless chrome is on the side window you

get connected taillights in the interior, you get 12 inch

vertical screen you get digital instrument cluster you get

big off-roading modes you get electric gear lever you get

sunroof in the roof

you get 800mm water weighting capacity and 2.0 litre diesel

or 3.0 litre diesel option which is very good, no problem

I think, friends, if this car is priced at 60 lakhs then

also this car will sell some people are saying that it will

not sell but I think it will sell because the value you get

in this car you don't get it in any other car and many

people will say that

it cannot compete with Fortuno but it will compete with

Fortuno even if the old one is not able to compete

Toyota has no intention of making Fortuno so Ford has an

option and there is a very low chance that Ford can make

its Mustang locally in India and if Ford wants to export

this car locally then also they can make it in India and in

this car you get 2.4

litre EcoBoost or 5.0 litre V8 engine in India, you can

literally put 1.5 litre no problem, just give Mustang body

you get new looks in the front very angry you get big

lights in the side and you get 3 part taillights in the

back you get dual screen setup

in the interior and the Mustang which is sold in India

I mean, it is sold which we have in India and I think in

2-3 years

Ford will start selling cars in India this is my

expectation if this brand's factory in India becomes

profitable and this was all for today's video if you liked

it, then like, share and subscribe

I told you that Ford will come in India and it has come in

India just wait for a while

Ford's cars will also come in India

I am sure there is no car maker who is making cars in any

country and why won't they make additional profit by

selling cars