Ford Motor Company said on Friday it intends to restart operations at its manufacturing plant in Tamil Nadu. The American automaker aims to repurpose the facility for export-focused production, marking a new chapter in its relationship with the Indian market.
Kay Hart, President of Ford’s International Markets Group, revealed the company’s plans through a LinkedIn post. Hart said that Ford has submitted a Letter of Intent (LOI) to the Tamil Nadu government, outlining its proposal to utilize the Chennai plant for manufacturing vehicles destined for international markets.
The decision follows several high-level discussions between Ford Motor Company and the Tamil Nadu government, including a recent meeting between Hart and Tamil Nadu’s Chief Minister M K Stalin during his visit to the United States.
Hart said, “I am pleased to share that today we are announcing that we have submitted a Letter of Intent (LOI) to the Government of Tamil Nadu in India, outlining Ford’s intention to utilize our Chennai plant for manufacturing for export. The decision follows multiple meetings with the Tamil Nadu Government, including one I had last week with the Chief Minister of the Government of Tamil Nadu as part of his visit to the United States. We appreciate their ongoing support as we have explored different options for the plant.”
“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. I know people will be curious, but we will have more to share about the type of manufacturing and which export markets we’ll be focusing on, along with other details, in due course,’ She added.
Hart also highlighted Ford’s growing presence in Chennai beyond manufacturing. The company’s global Ford Business Solutions team in the city currently employs over 12,000 people, with plans to add another 2,500 to 3,000 team members in the coming years.
Ford stopped producing cars in India for domestic sale in 2021 after struggling to boost volumes and pulled the plug on exports in 2022, effectively exiting the world’s third-largest car market, which is dominated by Asian rivals.
“The move will see the facility re-purposed to focus on manufacturing for export to global markets,” Ford said in a statement.
The cars that Ford plans to make at the facility and other details will be announced later, the company said.
Prior to its exit, it built cars and engines at its plant in the city of Chennai in Tamil Nadu.
(Inputs from agencies)
