Ford revives Indian operations with export-focused Chennai plant 

In a significant move towards re-establishing its presence in India, Ford announced plans on Friday to repurpose its Chennai manufacturing facility to cater primarily to global markets. This initiative is part of the company’s broader Ford+ growth strategy, underscoring Ford’s long-term commitment to expanding its global footprint. The automaker submitted a Letter of Intent to the Tamil Nadu government, highlighting its intent to transform the plant into a key manufacturing hub. 

Ford’s decision to reinvest in its Chennai facility comes after a meeting between Tamil Nadu Chief Minister MK Stalin and Ford’s leadership during Stalin’s recent visit to the United States. This meeting appears to have set the wheels in motion for the company’s renewed focus on India, with Chennai now positioned to play a critical role in Ford’s export ambitions. 

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” said Kay Hart, president, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.” 
 
Further information about the type of manufacturing and other details will be disclosed in due course. 

At present, Ford employs around 12,000 individuals in Tamil Nadu within its Global Business Operations, and this workforce is expected to grow by an additional 2,500 to 3,000 jobs over the next three years. Along with its engine production unit in Sanand, Gujarat, India now represents Ford’s second-largest salaried workforce globally.  

Ford’s Chennai plant previously manufactured popular SUVs like the EcoSport and Endeavour, while its Sanand plant focused on producing the Aspire sedan and hatchbacks like the Figo and Freestyle. The Sanand vehicle manufacturing unit was sold to Tata Motors in early 2023, but Ford continues its engine manufacturing operations at the site, as well as maintaining service operations throughout India.  

Ford initially exited the Indian market in September 2021, citing business challenges. Though the company had applied to the government’s Production Linked Incentive (PLI) scheme to manufacture electric vehicles (EVs) for export, it ultimately decided to shelve those plans. Last year, the automaker surprised many by walking away from a deal to sell its Tamil Nadu plant to JSW Group. This sparked widespread speculation about a possible return, especially as India’s auto market has rapidly evolved, with brands like Kia and MG Motors enjoying swift success. 

Ford’s “Make in Chennai” plans signal not only a fresh chapter in its Indian operations but also a reflection of the country’s growing importance in global manufacturing. With its focus on exports, the company seems poised to leverage India’s skilled workforce and strategic location to boost its international operations.