Ford has reportedly finalised plans to utilise its dormant Chennai facility for manufacturing and exporting engines and associated components, according to sources familiar with the matter.
The company will reveal the specifics of this initiative in the second quarter of this year. The plan excludes vehicle manufacturing in India.
“Ford is going to be making engines at the Chennai plant,” confirmed one source. “It (the facility) will be repurposed for export-focused production. This decision is part of Ford’s broader global strategy.”
US carmaker Ford stopped vehicle production in India in 2021 and exited the following year, having maintained a limited market presence throughout its 25-year operation in the rapidly expanding South Asian automotive market.
The Maraimalai Nagar facility near Chennai has remained inactive since mid-2022.
Although discussions about reviving the plant had been ongoing, recent speculation suggested Ford might abandon its India plans, particularly considering the Trump administration’s domestic manufacturing initiatives and implementation of import duties.
Two Indian government officials confirmed the plans are proceeding as intended, though they remained tight-lipped about the specific products slated for manufacture at the facility.
“Senior executives at Ford have had high-level discussions with the Tamil Nadu government recently where they reiterated their commitment to India,” confirmed another source, verifying that the plant would produce engines.
he engine manufacturing initiative aligns with Ford’s global strategic direction, according to sources who spoke to the financial daily. The company maintains its export operations from Sanand, where it transferred the majority of its manufacturing facility to Tata Motors two years ago.
Sources indicate that export-oriented projects are in their final stages, with formal announcements expected imminently, according to an individual familiar with the developments.
Previously, Ford explored introducing electric vehicles in India and studied the viability of products including the Endeavour, Everest and the Mustang. These initiatives appear to have been deprioritised in favour of the new export-centric approach.
Following the closure of its Indian dealership network whilst maintaining service centres, industry analysts suggest Ford’s operations are now exclusively focused on exports.
