Ford To Resume Vehicle Manufacturing In India; To Export Cars Built In Chennai

Ford is set to restart car manufacturing operations in India, albeit only for export markets. The company has announced that it has signed a Letter of Intent with the Government of Tamil Nadu to restart manufacturing operations at its Chennai plant. The document signing follows a meeting between the American company’s leadership and MK Stalin, the Chief Minister of Tamil Nadu during the latter’s visit to the USA.

Also read: Ford Mulls India Return, Holds Talks With Tamil Nadu CM

Ford India had previously announced its decision to cease local vehicle manufacturing in 2021, discontinuing the sales of its made-in-India vehicles such as the Ford Figo, Freestyle, Aspire, EcoSport and Endeavour. While some could see the restart of production for exports as a step towards re-entering the Indian car market, any such plans for now remain unknown. Back at the time of shutting production, Ford had revealed plans to return to India with popular model lines from its global product portfolio such as the Mustang and Mustang Mach E though these plans have yet to materialise.

The announcement of the signing of the Letter of Intent comes days after Tamil Nadu CM MK Stalin met Ford executives in the USA (pictured).

In a statement, Kay Hart, President, Ford International Markets Group said, “ 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.”

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The company said that the repurposing of the facility to focus on vehicle exports followed the brand’s Ford+ growth plan. Under the plan, the company has split its business into multiple verticals including dedicated verticals for for EVs and internal combustion vehicles. The plan also calls for improving efficiencies along with generating stronger cash flows and profitable growth.

Ford has however not yet shared much details on its plans to restart manufacturing at its Chennai plant. The company says that more details such as the type of manufacturing, markets for exports etc will be revealed in due course.

Also Read: Ford India Ending Local Vehicle Production: All You Need To Know

Ford’s Global Business Operations in Tamil Nadu currently employs around 12,000 individuals with this number expected to grow. Ford says that restarting vehicle manufacturing operations could see it hire up to 3,000 fresh employees within the next three years.

Tamil Nadu plant aside, Ford still retains the use of its engine manufacturing facility in Sanand. The carmaker had sold the Sanand vehicle manufacturing facility to Tata Motors during FY2023 though the engine manufacturing facility was retained by Ford India.

Aside from announcing its plans to restart manufacturing cars at its Chennai plant, Ford also reiterated its commitment to existing Ford vehicle owners in India. The company said that it would continue to serve its existing vehicle owners with comprehensive customer support, spare parts and warranty.