BENGALURU, Sept 11 (Reuters) - Ford Motor ( F ) held

talks with India's Tamil Nadu state to explore producing

vehicles for export, the state's chief minister said,

potentially signalling that the U.S. carmaker could restart

production in India after exiting the country three years ago.

Ford stopped producing cars in India for domestic sale in

2021 after struggling to boost volumes and pulled the plug on

exports in 2022, effectively exiting the world's third-largest

car market which is dominated by Asian rivals.

Ford sold one of its two plants in India to Tata Motors

in 2023. Its other plant, which is in Chennai in Tamil

Nadu state, was shuttered.

"Had a very engaging discussion with the team from Ford

Motors. Explored the feasibility of renewing Ford's three decade

partnership with Tamil Nadu, to again make in Tamil Nadu for the

world," M.K. Stalin said in a post on X.

Ford continues to explore suitable alternatives for its

plant in Chennai, the automaker said in a statement.

Ford, which made its EcoSport and Endeavour SUVs in India,

had a less than a 2% share of the country's passenger vehicle

market when it stopped production, having struggled for years to

turn a profit.

When it stopped production, Ford said it had accumulated

losses of more than $2 billion over a decade and demand for its

new vehicles had been weak.

The decision to exit the market came after Ford and local

automaker Mahindra & Mahindra failed to finalise a

joint venture partnership that would have allowed the U.S.

company to continue making cars in India at a lower cost.

Ford continues to build engines for its Ranger pickup trucks

at its factory in western India and source parts from local

suppliers for global operations.