Ford realises India is hard to ignore, coming back soon

Ford Motor Company is set to re-enter the Indian market by reopening its manufacturing plant in Tamil Nadu, a move that marks a reversal of its previous exit strategy. The company announced on 13th September that it plans to repurpose the facility to focus on exports to international markets as part of its ambitious Ford+ growth plan.

India is hard to ignore

The Chennai plant, which had been closed since 2021, was previously involved in the production of cars and engines. Ford’s decision to restart operations is expected to bolster the company's presence in India and leverage the manufacturing expertise available in the region. Details regarding the specific models and other operational aspects of the renewed facility will be disclosed at a later date.

Kay Hart, president of Ford International Markets Group, expressed gratitude for the continued support from the Tamil Nadu Government, highlighting the importance of the region in the company’s global strategy. “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,” Hart said.

Tamil Nadu in focus

Currently, Ford employs approximately 12,000 individuals in its Global Business Operations in Tamil Nadu, with plans to increase this number by 2,500 to 3,000 jobs over the next three years. The state, combined with Ford’s engine manufacturing operations in Sanand, represents Ford’s second-largest salaried workforce worldwide.

This development follows a recent meeting between Ford executives and Tamil Nadu Chief Minister MK Stalin, who was visiting the US to discuss investment opportunities in the state. Stalin took to X (formerly Twitter) to highlight the productive discussions, stating, “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!”

There had been speculation about Ford’s interest in re-entering the Indian market with both internal combustion engine (ICE) vehicles and electric vehicles (EVs) in Completely Built Up (CBU) form. However, after announcing its exit in September 2021, Ford initially applied to participate in the government’s Production-Linked Incentive (PLI) scheme but later withdrew its plans to produce EVs in India for global markets.