MG Motor India keen to take over Ford plants in Gujarat, TN

Days after Ford declared it wants to quit Indian automobile space, MG Motor India has shown interest in acquiring the US auto major’s manufacturing facilities in Sanand (Gujarat) and Chennai.

Ford Motor Company’s Sanand unit will stop functioning by the fourth quarter (Q4) of this year while the Chennai plants will wind up operations by the second quarter of 2022.

Also read: Ford exit: Why has another US carmaker run out of gas in India?

The talks between MG, a British car manufacturer owned by a Chinese company, and Ford seem to be in early stages. None of the two auto majors have come out with an official statement yet. Before COVID, MG was keen on signing a contract manufacturing deal with Ford, but the deal did not materialise due to the pandemic. Now, MG is looking at all options, including contract manufacturing and outright sale.

Meanwhile, several media reports have confirmed that Ford India is in talks with other original equipment manufacturers like Mahindra & Mahindra and Ola.

Also read: Ford too drives out: Why are global majors struggling in India?

The Tamil Nadu government, under pressure from thousands of Ford employees to save their jobs, is ready to provide support for the deal in terms of approvals.

A week back, Ford’s India head Anurag Mehrotra came out with a statement saying that despite the carmaker’s best efforts, it has been unable to find a sustainable path forward to long-term profitability. Ford said it had incurred losses of $2 billion in India during the last 10 years and was still unable to find a good market for its cars. In May this year, it made a similar announcement stating that it was stopping productions in Brazil after taking a $12 billion hit.

With Ford exiting India, the presence of the American car manufacturers in the country has more or less ended as General Motors had closed shop earlier. Even after being in the country for over two-and-half decades, Ford’s market share is a mere 2 per cent.