Donald Trump tariffs may kill Ford’s India comeback as $1 bn Chennai plant faces shutdown

Ford is reportedly reconsidering its comeback in India, with its idle Chennai plant back under review. Plans to restart operations at the Maraimalai Nagar facility have hit a roadblock — and Donald Trump’s tariff bombshell may be the tipping point, The Economic Times reported, citing sources.

Executives at the US automaker’s Michigan headquarters are expected to meet soon to decide the fate of the Tamil Nadu facility, which has been dormant since mid-2022. The company had previously explored using the plant to manufacture engines for export, but shifting global priorities and rising trade barriers have reportedly changed the calculus.

“The Trump tariffs have made the company reassess the financials underlying the original plan,” one source familiar with the matter told ET.

The options now on the table include restarting operations or writing off the investment altogether. The mood internally has shifted from cautious optimism to concern, with one person saying bluntly: “India is no longer a priority market.”

Instead, Ford is doubling down on Europe. The company has already pumped ₹4.4 billion into its German operations, launched an EV initiative in Cologne, and is building component hubs and battery R&D centers in the UK — all part of a sweeping pivot toward electric vehicles in more strategic markets.

Officially, Ford says nothing has changed: “Our position in relation to our Chennai manufacturing facility has not changed from late 2024,” a spokesperson said, adding that details on the type of manufacturing will be disclosed “in due course.”

The Tamil Nadu government is reportedly pressing Ford to clarify its plans, eager to revive activity at the plant and boost the state’s automotive footprint.