Ford Motor Company is set to restart operations at its idle facility near Chennai, but this time with a strict export-only focus, according to reports from The Economic Times. The American automaker plans to manufacture and export engines and related components, marking a strategic shift away from the Indian passenger vehicle market.
Chennai Plant Revival for Export-Focused Production
After ceasing vehicle production in India in 2021 and fully exiting the domestic market the following year, Ford’s Maraimalai Nagar facility near Chennai has remained shut since mid-2022. However, recent reports confirm that the company has finalized plans to repurpose the plant for export-focused engine production, aligning with its broader global manufacturing strategy.
According to sources, Ford will not resume vehicle production in India, signaling a definitive exit from the country’s competitive automobile market. The decision comes amid growing export opportunities and the automaker’s renewed emphasis on global component supply chains.
High-Level Talks With Tamil Nadu Government
As part of the plant’s revival, senior Ford executives recently held discussions with the Tamil Nadu government, reaffirming their commitment to the export-oriented initiative. While the company has not yet disclosed details about the production lineup, government sources confirmed that the facility will be exclusively used for engine manufacturing.
Ford’s Export-Only Strategy Gains Momentum
The Chennai plant revival follows Ford’s existing export operations from its Sanand facility in Gujarat, where the company sold most of its assets to Tata Motors two years ago. Despite exiting the domestic market, Ford continues to export components from India, capitalizing on lower manufacturing costs and global demand for powertrain components.
EV Plans Put on Hold
Ford previously explored electric vehicle (EV) manufacturing in India, conducting feasibility studies on models like the Endeavour, Everest, and Mustang. However, with the latest export-centric strategy, EV plans appear shelved, indicating a clear shift away from local vehicle production.
Ford’s India Exit: A Strategic Realignment
Despite over 25 years in India, Ford struggled to gain a substantial market share in the price-sensitive and competitive automobile sector. The decision to pivot toward exports reflects the automaker’s focus on streamlining operations and capitalizing on global markets, rather than re-entering the challenging Indian passenger car space.
