Ford announced that it has submitted a Letter of Intent (LOI) to the Tamil Nadu government, expressing its intention to repurpose its Chennai plant for export-oriented manufacturing.
Kay Hart, President, Ford Motor Company's International Markets Group, shared on LinkedIn that this decision follows several discussions with the Tamil Nadu government, including a recent meeting with the Chief Minister during his visit to the United States. Hart thanked the state government for its continued support as the company explored various options for the plant.
This move signals Ford's ongoing commitment to India, with plans to leverage Tamil Nadu's manufacturing expertise to serve new global markets. Hart stated that while details about the type of manufacturing and targeted export markets will be disclosed later, the company's focus on expanding operations in Chennai remains clear.
Ford plans to increase its Chennai-based global Ford Business Solutions team from over 12,000 employees to an additional 2,500 to 3,000 in the next few years. "When you add that with our engine manufacturing team in Sanand and our ongoing customer and dealer support team, India is Ford’s second-largest employee base worldwide," Hart mentioned.
The U.S. automaker is currently conducting a feasibility study on its strategy for re-entering the Indian market. Initially focusing on vehicle exports, the company may eventually expand to assembling completely knocked down (CKD) vehicles. Ford halted its Indian operations in September 2021 and sold its Sanand, Gujarat factory to Tata Motors. Although it had considered selling the Chennai factory to other automakers, those plans were later shelved.
The Chennai plant, which has been non-operational since mid-2022, is expected to restart as an Export Oriented Unit (EOU). Recently, Tamil Nadu Chief Minister MK Stalin met with Ford officials in the U.S. to discuss the future of the shuttered Maraimalai Nagar plant near Chennai.
Ford's feasibility study reportedly includes products like the Endeavour, Everest midsize SUV, and the Mustang range. Additionally, Ford's engineers are working on an affordable, all-new electric vehicle platform aimed at developing markets like India. Further clarity on these plans is anticipated upon the Chief Minister's return from his investment-seeking trip to the U.S. (ET)
