Ford Motor Company is gearing up to repurpose its Chennai facility for engine manufacturing and export, according to a report by the Economic Times. The move comes as part of Ford’s global realignment strategy, following its exit from vehicle production in India back in 2021.
Chennai Plant to Focus on Export-Driven Engine Production
An insider source confirmed to ET that Ford plans to restructure the Chennai plant specifically for engine production with a strong focus on export markets. This signals a strategic shift for the automaker, aiming to leverage its manufacturing capabilities in India for global distribution rather than domestic sales.
“Ford is going to be making engines at the Chennai plant,” the source revealed, adding that the facility will prioritize export-focused production in alignment with the company’s broader international plans.
Chennai Facility Status: Dormant Since 2022
The Maraimalai Nagar facility, located near Chennai, has remained inactive since mid-2022. After Ford’s production exit from India, the plant’s future remained uncertain. Speculation grew around Ford’s potential withdrawal from the Indian market entirely, especially amid the Trump administration’s domestic manufacturing push and rising import duties.
However, two Indian government officials confirmed that Ford’s plans are moving forward as originally intended, though they declined to specify which engine models or products will be manufactured at the facility.
Ford’s Global Strategy: India as an Export Hub
By converting the Chennai plant into an engine manufacturing and export hub, Ford aims to strengthen its international footprint while tapping into India’s cost-efficient manufacturing capabilities. The decision reflects a broader trend of global automakers using India as a production and export base, despite scaling back on local sales operations.
