Ford Motor Company has decided to restart operations at its Chennai plant, but only for engine and component exports, with no plans to manufacture vehicles in India. According to sources, an official announcement is expected in the second quarter of 2025.
Key Highlights of Ford’s Chennai Plant Reopening
- Production Resumption:
- The Maraimalai Nagar facility, inactive since mid-2022, will now produce and export engines and related components.
- This move aligns with Ford’s global export strategy, following similar operations at its Sanand plant in Gujarat.
- No Vehicle Manufacturing in India:
- Despite earlier considerations to bring electric models like the Endeavour, Everest, and Mustang, Ford has shelved EV production plans in India.
- The company shut down car production in 2021 and exited the Indian market in 2022 due to financial losses.
- Government and Policy Influence:
- While concerns were raised about US trade policies impacting Ford’s India operations, government officials have confirmed the company’s commitment to Chennai.
- Discussions between Ford executives and Tamil Nadu officials suggest the plan is moving ahead.
Ford’s Exit from India and Current Strategy
Ford had been in India for over 25 years but struggled with high maintenance costs and tough competition. The company incurred $2 billion in losses over a decade, leading to its decision to stop car manufacturing in September 2021.
- Sanand Plant Sale: Most of the facility was sold to Tata Motors, while Chennai remained idle.
- Service Operations Only: Ford shut down dealerships but retained service centres for existing customers.
This latest move confirms Ford’s shift towards using India as a global export hub rather than a domestic vehicle market.
