In recent developments, Ford India decided to stop manufacturing in India. Their manufacturing facilities in Gujarat and Tamil Nadu will stop producing cars by the end of this year and the first quarter of next year respectively.

These production plants are up for grabs and many carmakers are showing interest. The Ford India assets are reportedly attractive to MG Motor India, according to a recent report in the media. MG planning on increasing their production output, this might be a good solution for them. 

MG Motor India and Ford are currently in the talk

It has been reported recently that MG Motor India is in talks with Ford India about the Sanand and the Maraimalai Nagar factories of the latter. The talks are said to be in their infancy at the moment, so it’s not clear if MG will actually acquire the concerned factories. There aren’t many alternatives for Ford, as both of its plants are set to close soon.

However, due to the pandemic and its impact on sales, MG had to delay its plans to increase production capacity at the Ford facility. However, ‘all options’ are now being considered, including contract manufacturing and outright sale. There aren’t many alternatives for Ford now, so buyers are searching for a deal.

According to the report, the talks are still in their infancy. There has been no response from MG Motor India’s president and CEO Rajeev Chaba. MG had discussed contract manufacturing with Ford before the COVID-19 pandemic imposed restrictions, so the company had to abandon its plans.

A lot has changed and MG is considering every option, from contract manufacturing to outright sale. The Tamil Nadu government has also announced that it will provide full support for the approvals process and the asset may also be eligible for fiscal benefits, making it more appealing.

The Figo, Aspire, Freestyle, EcoSport, and Endeavour were among the Ford models available in India. All Ford dealerships are offering steep discounts on their remaining inventory as a result of the discontinuation of the discontinued model. However, Ford’s activities in the Indian market will not be completely stopped. Existing customers will be able to buy replacement parts, as well as warranties, from the manufacturer. The blue oval has also confirmed that it will continue to focus on iconic, high-end vehicles in India in the future. A few examples are the Ford Raptor, Mustang, and the Mach-E. As CBU imports, all of these new models will be extremely expensive when they are released in the United States.

There are also rumours that Ola electric is also in talks with Ford India to acquire their manufacturing. Ola Electric just entered the two-wheeler EV market. With their massive 500 acre plant prepared near Hosur, this might be a hoax. We will have to wait to know the end result. 

Also, read: Ford to stop production in India