Ford Motor Announces Return To India With Chennai Plant Revival

US automaker Ford Motor is making a notable return to India. The company will restart its manufacturing plant in Chennai and hire 2,500 to 3,000 new employees. The announcement came on Friday, marking a significant step in Ford’s strategy to boost exports from India.

Commitment to Tamil Nadu and Expansion Plans

Kay Hart, President of Ford International Markets Group, highlighted the move as a sign of Ford’s ongoing commitment to India. She emphasized the intent to utilize Chennai’s manufacturing expertise to serve new global markets. In a LinkedIn post, Hart shared that Ford has submitted a letter of intent (LOI) to the Tamil Nadu government, detailing plans to use the Chennai plant for export manufacturing.

The decision follows extensive discussions with the Tamil Nadu government. Hart acknowledged their support and mentioned that further details about the manufacturing plans and target export markets would be shared soon.

Previous Exit and Future Prospects

Ford Motor ceased operations in India in 2021 due to low sales and financial losses in the competitive automotive market. Tamil Nadu Chief Minister MK Stalin had earlier announced engaging discussions with Ford about renewing their partnership. He also highlighted his recent visits to the headquarters of tech giants like Google, Apple, and Microsoft, securing investment agreements for Tamil Nadu.

Hart noted that the revival would expand Ford’s Chennai workforce. The global Ford Business Solutions team in Chennai currently exceeds 12,000 employees, with plans to add 2,500 to 3,000 more in the coming years. Ford also operates an engine manufacturing facility in Sanand, Gujarat. India remains Ford’s second-largest employee base worldwide.

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