Ford to Restart Chennai Plant for Global Export Markets

Ford Motor (F.N) announced on Friday its intention to resume manufacturing at its Chennai plant in the state of Tamil Nadu, India. This move comes two years after the company ceased production in India.The U.S. automaker plans to use the Chennai plant for manufacturing products for export. Specific details about the products have not been disclosed yet. 

Ford Repurposing the Chennai Plant for Global Export Markets

Ford announced that it will repurpose its facility to focus on manufacturing for global export markets. After facing challenges in increasing sales volume, Ford ceased car production for domestic sale in India in 2021. In 2022, the company also halted export car production in the region, effectively withdrawing from a large market primarily dominated by Asian competitors.

The automotive company continues to produce engines in India for international markets at its Gujarat factory in the western state. Considering a potential resumption of car manufacturing in Chennai, this move would signify a return to the brand’s vehicle business in the region.

Kay Hart, the president of Ford’s international markets group, posted on LinkedIn that this decision highlights our enduring commitment to India. We aim to capitalize on Tamil Nadu’s manufacturing capabilities to access new global markets.

Ford has submitted a letter of intent to the state government detailing manufacturing and exporting operations plans. The company plans to resume manufacturing in Tamil Nadu for export, expecting to increase its workforce by up to 3,000 people in the next few years. Chennai, known as an automobile hub, hosts several carmakers. New entrants like Vinfast and Tata Motors’ Jaguar Land Rover are also planning to establish factories there to produce electric vehicles.