Ford Motor Company is set to return to India, resuming operations at its Chennai plant with a new focus on electric vehicles (EVs). This marks Ford’s comeback to the Indian market two years after it halted production and exited the country.
The company announced its plans during a recent visit by Tamil Nadu Chief Minister M K Stalin to Ford’s headquarters in Dearborn, Michigan. The Tamil Nadu government, keen to revitalize the Maraimalai Nagar facility, had been actively negotiating with Ford over the past year. Chief Minister Stalin’s visit and assurances played a pivotal role in Ford’s decision to restart manufacturing in Chennai.
Ford’s Chennai plant, which closed in August 2022, will now be part of the company’s “Ford+ Growth Plan.” This initiative aims to leverage the plant’s capacity for exporting electric vehicles to Southeast Asia. The Maraimalai Nagar facility, spanning 350 acres, has the potential to produce 200,000 vehicles and 340,000 engines annually.
Kay Hart, president of Ford’s international markets group, confirmed the company has submitted a letter of intent to the Tamil Nadu government, outlining its plans for the plant. Hart expressed gratitude for the support from the state government and highlighted the strategic importance of the Chennai location.
The decision follows extensive discussions with Tamil Nadu officials, including a significant push from Industries Minister TRB Rajaa, who met with Ford in San Francisco and later in Dearborn. Ford’s previous exit from India had resulted in $2 billion in losses over a decade and a minimal market share of less than 2%. Despite this, Ford remains committed to the Indian market.
In addition to the Chennai plant, Ford previously sold its Sanand, Gujarat facility to Tata Passenger Electric Mobility in December 2022 for ₹725.7 crore. This unit has an annual production capacity of 300,000 vehicles.
Ford’s renewed presence in India comes amid a wave of reentries by global brands into the Indian market. Companies like Shein and Carrefour are also making a comeback, indicating a broader trend of international businesses reassessing their strategies in India.
Ford continues to serve a million customers in India through service, parts, and warranty support. The company has around 12,000 employees in its Global Business Operations in Tamil Nadu, with plans to add 2,500 to 3,000 more in the next three years.
As Ford prepares to resume operations, it will provide further details on its plans for the Chennai plant in the near future.
