Ford Motor announced on Friday that it will restart its manufacturing operations in Tamil Nadu, India, by reviving its Chennai plant, which has been idle since the company exited India in 2021. This move follows a meeting between Ford executives and Tamil Nadu Chief Minister M.K. Stalin during his visit to the United States.
Ford has submitted a Letter of Intent (LOI) to the Tamil Nadu government, signaling its plan to use the Chennai facility for export-oriented manufacturing. This decision is part of Ford’s broader ‘Ford+ growth plan,’ aimed at leveraging the state’s manufacturing capabilities to access new global markets.
Kay Hart, President of Ford International Markets Group, said, “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.”
The company will focus on exporting vehicles from the Chennai plant, although specific details regarding the types of vehicles and manufacturing processes will be revealed later. This strategic move reflects Ford’s renewed commitment to India as a key player in its global operations.
Ford currently employs about 12,000 people in its Global Business Operations in Tamil Nadu, with plans to increase this number by 2,500 to 3,000 jobs over the next three years. India remains a significant market for Ford, with the country housing Ford’s second-largest salaried workforce worldwide, behind only its engine manufacturing operations in Sanand.
In September 2021, Ford had announced its exit from the Indian market after struggling for nearly three decades, deciding to cease vehicle production at its two Indian plants and focus on selling imported vehicles.
