Ford, the renowned American automaker, has expressed its intent to re-enter the Indian market by restarting operations at its Chennai, Tamil Nadu plant. This move comes as part of Ford’s strategic plan to leverage India’s manufacturing capabilities to meet the demand in global markets, marking a significant comeback after the company’s exit in 2021. Ford’s decision is driven by its goal to focus on exports, aligning with its Ford+ growth strategy.
In 2021, Ford ceased vehicle production in India due to dwindling sales and planned to shut down its operations in the country. The automaker sold its Sanand plant to Tata Motors, while the Chennai plant was slated for closure. However, challenges in winding down the Chennai operations by the initial target mid-2022 delayed the full exit. Ford’s return now breathes new life into the Chennai facility, reaffirming its ongoing commitment to India.
Ford International Markets Group President Kay Hart emphasized the importance of India’s role in the company’s export strategy. “This step underscores our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets,” she said. The decision was made in consultation with the Tamil Nadu government, with Ford maintaining a solid partnership.
The revamped facility in Chennai will primarily focus on manufacturing for export to international markets, tapping into Ford’s vast production capabilities and the highly skilled workforce in Tamil Nadu. The company expects to add between 2,500 and 3,000 new jobs over the next three years, further strengthening its regional presence. The plant’s engine manufacturing operations will play a crucial role in supporting global demand, particularly in emerging markets.
While details regarding the specific models and types of vehicles to be produced remain under wraps, the company’s commitment to scaling up its workforce is a testament to its long-term vision. Ford’s operations in Tamil Nadu, which already employ around 12,000 individuals in Global Business Operations, will soon become a key export hub for the brand.
This move is a significant milestone for Ford and a major boost to the local economy. Ford’s manufacturing operations in India, combined with the engine production at the Sanand facility, now represent the company’s second-largest salaried workforce globally.
The revival of Ford’s Chennai plant also offers optimism for India’s automotive sector, which has been recovering from the effects of the global pandemic. Ford’s decision to re-enter the market aligns with broader trends of multinational companies seeking to use India as a manufacturing hub for exports.
