(Corrects typo in para 1)

Sudarshan Varadahan

CHENNAI (Reuters) – After inconclusive talks between the Tata Group and the State Industries Minister, foreign automakers indicated interest in the acquisition of Ford Motor (NYSE) Co’s Tamil Nadu plant.

Ford plans to end production in India this September because it does not see any way to profit there. Ford expected that operations in its Tamil Nadu engine and vehicle manufacturing units would be closed by 2022.

Thangam Thenarasu (industries minister in Tamil Nadu), said that talks were ongoing at the early stage and added that he couldn’t give specifics about which companies were interested.

Ford is ultimately responsible for the arrangement, which will become a commercial one. He said that he was only facilitating discussions between the companies.

Thennarasu stated that Tata Group was also interested in the Ford plant. The Tata Group met the state’s chief Minister and visited Ford for an initial study, but they had not heard from the state about any possible deal.

Thennarasu said to Reuters that “it is now up for them to make an officially announced,” in an interview.

Ford India announced in September that it will close operations in a second plant in Gujarat, state in 2021, and in vehicle and engine production in Tamil Nadu by 2022.

Global Data says Ford can produce approximately 440,000 Indian cars per year in India across its two plants, however it only uses 25%.

Ford responded to Reuters when asked about potential buyers for the Tamil Nadu plant. He said that he was continuing to look at other options, but had nothing to add.