Ford to Resume Vehicle Production in India for Export Markets
Ford has announced plans to resume manufacturing operations at its Chennai plant in Tamil Nadu, focusing on producing vehicles for export markets. This marks a significant shift for Ford, which ceased vehicle sales in India in September 2021. Although the company has not yet detailed any potential return to the Indian market for domestic sales, the move reflects a strategic effort to tap into India’s status as the third-largest car market globally.
Ford’s sales outlets in India have been closed, leaving only service and spare parts centers operational. Despite this, the company is keen on utilizing its Chennai facility, which previously produced popular models like the EcoSport and Endeavour, to cater to international markets. Ford’s Chennai plant, with an annual production capacity of 200,000 vehicles, is now set to be repurposed for export under the company’s Ford+ growth plan.
In addition to the Chennai plant, Ford’s Sanand facility, which once had the capacity to produce 240,000 vehicles and 270,000 engines annually, was sold to Tata Motors in January 2023 for ₹725.70 crore. However, Ford continues to manufacture engines at Sanand and maintain service operations in India.
The decision to restart operations in Chennai follows a letter of intent submitted to the Tamil Nadu government, a gesture formalized after a meeting between Ford executives and Tamil Nadu Chief Minister MK Stalin during his visit to the United States.
Kay Hart, President of Ford International Markets Group, expressed appreciation for the support from the Tamil Nadu government and emphasized the company’s commitment to leveraging local manufacturing expertise to serve global markets. Ford currently employs 12,000 individuals in Tamil Nadu, with plans to increase this number by 2,500-3,000 over the next three years. This expansion, combined with ongoing engine production in Sanand, makes India Ford’s second-largest salaried workforce worldwide. Further details on the types of vehicles to be manufactured at the Chennai plant will be disclosed in the future.
