Ford Considering A Comeback To India, Firm To Focus Solely On Manufacturing Engines And Not Cars: Report

The American automaker ceased vehicle production in India in 2021 and completely exited the market the following year. Since mid-2022, its Maraimalai Nagar facility near Chennai has remained shut.

Ford has reportedly finalised a plan to restart operations at its idle facility near Chennai, but only for manufacturing and exporting engines and related components, media reports said.

The official announcement regarding this initiative is expected in the second quarter of this year, reported The Economic Times citing sources in the know. Notably, vehicle production is not part of the company’s India strategy.

“Ford is going to be making engines at the Chennai plant,” the report said quoting a source. “It (the facility) will be repurposed for export-focused production. This decision is part of Ford's broader global strategy," the source added.

The American automaker ceased vehicle production in India in 2021 and completely exited the market the following year. Despite being present in the country for more than 25 years, Ford struggled to establish a significant market share in India's highly competitive automobile industry. Since mid-2022, its Maraimalai Nagar facility near Chennai has remained shut.

Speculations and Government Discussions

While there were ongoing discussions about repurposing the plant, recent industry speculation suggested that Ford might abandon its India plans due to the US government policies encouraging local production and imposing import tariffs.

However, citing two Indian government officials, the report said that the company’s plans for the Chennai facility were still progressing as intended, although they did not disclose specific details about the production lineup.

Sources also revealed that senior Ford executives recently held high-level talks with the Tamil Nadu government, reaffirming their commitment to the project. One source reportedly confirmed that the facility would be used exclusively for engine production as part of Ford’s global strategy.

Ford has already been exporting components from its Sanand facility, where it sold most of its manufacturing assets to Tata Motors two years ago. The company’s export-oriented initiatives, including the Chennai plant revival, are reportedly in their final stages, with an official announcement expected soon.

Previously, Ford explored the possibility of launching electric vehicles in India and even conducted feasibility studies on models such as the Endeavour, Everest, and Mustang. However, those plans now appear to be on hold as the company shifts focus entirely toward exports. With all dealerships in India closed and only service centers remaining, industry experts suggest that Ford’s new approach signals a complete shift away from the domestic passenger vehicle market.

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