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Industry Buzz: Ford and Tata Mulling Over Joint Venture

According to a recent report from the business line, Ford Motors is gearing for a comeback to the Indian market and claimed to be in talks with Tata Group for a potential joint venture (JV) for India operations. Details about this are still under wraps.

Reports suggests that Ford plans to re-entre the Indian market with several new products, including a compact SUV. However, this time, the company is expected to focus on hybrid and electric vehicles, and they will be produced at their Chennai facility. Earlier, Ford engaged in discussions with various players like Mahindra, JSW Group, Hyundai and Vietnamese EV giant VinFast regarding the sale of the plant. However, none of these negotiations came to fruition. Back then, a spokesperson from Ford India stated, “We continue to explore alternatives for our manufacturing facility in Chennai.” Now, it appears that the company is close to finding a solution by re-entering the market through collaboration with Tata Motors.

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Ford entry in India

Ford has recently filed multiple patents, hinting at potential upcoming models. In addition to the new-generation Endeavour, Ford has also filed a patent for the Mustang Mach-E and a mid-size SUV, possibly intended to replace the EcoSport.

In 2021, Ford exited the Indian market due to persistent losses and difficulties in achieving profitability despite substantial investments. Challenges such as fierce competition, high operational costs, and the inability to align with Indian consumer preferences were major factors. Outdated product offerings, localization challenges, and shifting market dynamics further compounded the issues. However, with recent talks of a possible joint venture with Tata Motors, we anticipate Ford’s return to the Indian market.

Also Read: VinFast VF3 Electric Mini SUV, Design Patent Filed In India