Ford Returns to India, Chennai Plant Set to Reopen

Ford said it has submitted a letter of intent to the state’s government, two days after Tamil Nadu’s chief minister said that the two were in talks to restart manufacturing in the state for exports.

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Ford Eyes Return to Indian Market

Ford Motor announced on Friday its intention to restart a manufacturing plant in Tamil Nadu, India, focusing on exports. This move signals a potential re-entry into a market Ford exited three years ago. The company has formally submitted a letter of intent to the state government, following recent discussions with Tamil Nadu’s chief minister about resuming manufacturing operations aimed at export markets.

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The company announced it will re-purpose its Chennai plant to focus on manufacturing vehicles for export to global markets. Specific details about the cars to be produced and other related information will be revealed at a later date. Before its exit, the company manufactured cars and engines at this facility in Tamil Nadu.

“We appreciate the Tamil Nadu Government’s continued support as we evaluated various options for the Chennai plant,” said Kay Hart, President of Ford International Markets Group. “This move highlights our commitment to India and our intention to harness the region’s manufacturing expertise to enter new global markets.”

Why is Ford planning a comeback?

Last year, Ford unexpectedly abandoned plans to sell its Tamil Nadu plant (it had sold its Gujarat plant to Tata), its sole remaining factory site in the country, after finalising a deal with the Sajjan Jindal-led JSW Group. Ever since there has been speculation about its return to India, especially when Indian market has matured quickly and foreign brands such as Kia and MG Motors have become successful in a short .