Ford makes India re-entry, but will only manufacture cars for exports from Chennai plant

After pulling the plug on its India operations in 2021 and halting all exports from the country in 2022, Ford Motor has again warmed up to the idea of opening its manufacturing unit in India for exports. 

Ford Motor plans to restart a manufacturing plant for exports in the southern Indian state of Tamil Nadu, the company said on September 13, potentially re-entering a market it exited three years ago, Reuters reported. 

This strategic move will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.  

“The move will see the facility re-purposed to focus on manufacturing for export to global markets,” Ford said in a statement. The cars that Ford plans to make at the facility and other details will be announced later, the company said. Prior to its exit, it built cars and engines at the Chennai plant. 

“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.” 

Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide, the carmaker said in a statement. 

The latest development comes after a meeting between Ford officials and Tamil Nadu Chief Minister MK Stalin, who was in the US to discuss investments in the state. 

Stalin said that he had met with Ford officials to discuss the future of their closed plant in Maraimalai Nagar near Chennai. On X (formerly Twitter), he said, “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!” 

Earlier, talks were abuzz about Ford is looking at a third time India re-entry looking at both ICE (internal combustion engine) as well as EV production, in the CBU (Completely Built Up) form at the Chennai plant. 

After announcing the exit in September of 2021, Ford did apply to participate in the government’s PLI scheme but later dropped its plans to make EVs in India for the global markets.