Ford Returns to India, Revives Chennai Plant for Global Exports

After halting operations in India in 2021, Ford Motor Company is planning a return, shifting focus to exports. The automaker has signed a letter of intent (LoI) with the Tamil Nadu government, exploring the revival of its Chennai manufacturing facility. This move reflects Ford’s shift from targeting the domestic market, which struggled before its exit, to using India as a hub for global exports.

Located in Maraimalai Nagar, 50 km from Chennai, the plant, which ceased operations in 2022, once produced models like the EcoSport and Endeavour. With a production capacity of 200,000 vehicles and 340,000 engines annually, the facility could soon resume operations. Ford’s leadership met with Tamil Nadu Chief Minister M.K. Stalin to discuss the revival.

Though the specific vehicle models for production remain undisclosed, Ford’s focus will be on exports. The Tamil Nadu government sees this as a boost to the state’s automotive sector. Previously, Ford faced challenges in the Indian market, despite some successes with models like the EcoSport.

Ford’s return, focusing on exports rather than domestic sales, aligns with its global strategy to offset challenges in markets like China. The Chennai plant, with excellent logistical connections to key ports, will serve as a crucial asset for exporting to regions such as West Asia and Australia.