Ford to Restart Chennai Plant for Engine Exports, Not Vehicle Production

 Ford Motor Company is set to revive its inactive manufacturing facility near Chennai to produce and export engines and related components, marking a significant shift in its India strategy. The plant, located in Maraimalai Nagar, has been idle since mid-2022.

Sources familiar with the development revealed that vehicle manufacturing will not be part of Ford’s renewed operations in India. Instead, the company is repurposing the facility exclusively for export-oriented engine production as part of its broader global strategy.

“Ford is going to be making engines at the Chennai plant,” one source said. “The facility will be focused entirely on exports.”

Ford ceased vehicle production in India in 2021 and formally exited the market in 2022 after years of limited success. Over its two-and-a-half-decade presence, the company struggled to secure a significant share in the competitive Indian automotive sector.

Despite earlier speculation that Ford might abandon its India plans, particularly amid global policy shifts promoting local manufacturing in other regions, the latest updates confirm the company’s commitment to repurposing the Chennai unit.

Recent high-level discussions between Ford executives and the Tamil Nadu government have reaffirmed this direction, with the automaker indicating its long-term intent to operate in the state through export-led manufacturing.

The company also maintains an export presence through its former facility in Sanand, Gujarat, much of which was sold to Tata Motors two years ago. The remaining assets continue to support Ford’s global supply chain.

While Ford previously explored the possibility of re-entering the Indian market with electric vehicles—including feasibility studies for models like the Mustang, Endeavour, and Everest—those initiatives are currently on hold in light of the new export-focused model.

Ford has shut down all its dealerships in India, retaining only service centres to support existing customers. Industry experts view the current strategy as a pivot from domestic sales to leveraging India’s manufacturing capabilities for global supply.

An official announcement detailing the full scope of the Chennai plant’s reactivation is expected in the second quarter of this year.