Ford's India Factory Revival Plans: Fresh Details Surface
Amid rumours of possible delays and cancellation, fresh details have now surfaced, regarding Ford's planned India re-entry. The American carmaker is moving forward with its plans to revive the manufacturing plant in Tamil Nadu. Discussions are ongoing and some delay is expected due to tariff-related issues being addressed by the new administration.
Recently many mainstream media reported that Ford has abandoned its plans to restart operations at the Maraimalai Nagar plant in Chennai. Sources have now dismissed these.
Discussions In Progress, No Cause For Concern
According to sources familiar with the matter, Ford is now finalizing its revival strategy in collaboration with the Tamil Nadu government. "Ford is finalizing their plans, and we are in discussions with them. There is no cause for concern," a source reassured.
The Announcement to Resume Manufacturing
In September 2024, Ford publicly announced its intention to restart manufacturing at the Chennai facility, marking a return after two years of ceasing production here.
Ford submitted a Letter of Intent (LoI) to the Tamil Nadu government, confirming its commitment to utilizing the facility for export-oriented manufacturing. This decision followed high-level discussions between Ford's leadership and Tamil Nadu Chief Minister M.K. Stalin during his visit to the U.S. last year.
A Potential Boost for Tamil Nadu’s Automotive Sector
If Ford proceeds as planned, the revival of the Maraimalai Nagar plant could bring a major boost to Tamil Nadu’s automobile industry, generating employment opportunities and reinforcing the state’s position as a leading automobile manufacturing hub in India.
While there may be hurdles to clear, Ford remains engaged in discussions, and its plans for restarting production in Chennai are still on the table.
Ford’s Plans for India: EVs First, ICE as a Complement
Ford is expected to re-enter the Indian market with completely built-up (CBU) or completely knocked-down (CKD) ICE models, but its primary focus will be on EV exports. It plans to make electric vehicles in India and export to multiple global markets.
Ford has realized that 2025 will be a turning point for the EV market in India. Producing petrol and diesel vehicles will no longer be profitable, which is why Ford is revamping its Chennai plant to create a dedicated assembly line for battery-driven models.
stated a source previously.
The carmaker plans to convert the Chennai plant into an EV production facility. Back in the day, the facility could produce 200,000 (ICE) vehicles and 340,000 engines annually. The vehicle production ceased in July 2022, after Ford announced its exit from the domestic market. However, the plant continued to produce car parts. Now, the carmaker plans to restart vehicle production, for exports.
Possible Launches From Ford To Wait For
The Internal Combustion Engine (ICE) lineup could comprise the new Ford Everest and the Ranger pickup truck. The Ranger will be able to put up a strong fight against the Toyota Hilux, while the Everest will battle the likes of Fortuner and the upcoming MG Majestor.
Ford's Intentions with The Chennai Plant
EV sales have been on the decline globally. The US-based manufacturer has plans to launch more all-electric models in the UK soon. Many of these are likely to be produced at the Chennai facility. Initially, India-made Ford EVs will be limited to exports alone. Later, these might even be put on sale in the Indian market as well. The plant will also be able to produce hybrids alongside pure EVs. It will also be used to assemble/produce ICE models.