Ford to revive India plant to make cars for global markets

Around three years ago, Ford stopped producing cars at its Chennai factory in India following a massive USD 2 billion loss. It was originally meant to produce cars for the local market but after suffering massive losses in a span of 10 years, the Blue Oval decided to call it quits as they restructured their operations in India.

Fast forward to 2024, Ford announced it has submitted a Letter of Intent (LOI) to the Government of Tamil Nadu to restart operations at the shuttered Chennai plant to manufacture vehicles for export. The announcement came after a meeting between Ford leadership and the Honorable Chief Minister of the Government of Tamil Nadu as part of his visit to the US.

According to Ford, this strategic move will see the plant repurposed to build cars for export – particularly for global markets as part of the company's ambitious Ford+ growth plan. No exact details are available as of now but Ford did mention they will disclose other details in due course.

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant 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,” said Kay Hart, president of Ford International Market Groups.

The recent announcement reaffirms Ford’s commitment to India as a critical market for the company's global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu and that number is expected to grow by 2,500-3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.

With Ford tapping Indai's Chennai plant to make vehicles for export markets, we won't be surprised if regions like Southeast Asia will benefit from this. After all, Nissan Philippines Inc. (NPI) will likely source the Magnite from India.