Ford is making a comeback by reopening its manufacturing plant in Tamil Nadu, with plans to focus on global exports

Automaker Ford, poised to re-enter the Indian market, announced on Friday its plan to repurpose its Chennai plant for vehicle production targeting export markets. This initiative aligns with Ford’s Ford+ growth strategy and was confirmed through a letter of intent submitted to the Tamil Nadu government.

The Chennai facility will be restructured to focus on manufacturing for global exports. These “Make in Chennai” plans follow Tamil Nadu Chief Minister MK Stalin’s meeting with Ford’s leadership during his visit to the United States.

“We appreciate the continued support from the Tamil Nadu government as we evaluated various options for the Chennai plant,” said Kay Hart, president of Ford International Markets Group. “This move highlights our sustained commitment to India as we aim to harness Tamil Nadu’s manufacturing expertise to serve new global markets.”

Further details on the specific manufacturing operations will be revealed at a later stage, according to a press release.

Ford stated that it currently employs 12,000 people in its Global Business Operations in Tamil Nadu, with plans to increase that number by 2,500 to 3,000 within the next three years. Along with its engine manufacturing operations in Sanand, India now stands as Ford’s second-largest salaried workforce globally.

Why is Ford planning a comeback?

After announcing its exit from India in September 2021, Ford initially applied to participate in the government’s Production-Linked Incentive (PLI) scheme but later withdrew its plans to manufacture EVs in India for global markets. Despite its departure, speculation about Ford’s re-entry into India has persisted.

Last year, Ford unexpectedly canceled a deal to sell its Tamil Nadu plant—its last remaining factory in the country, having already sold its Gujarat plant to Tata—after finalizing negotiations with the Sajjan Jindal-led JSW Group. Since then, rumors about its return to the Indian market have continued, especially as brands like Kia and MG Motors have achieved rapid success in the evolving landscape.

With limited growth prospects in China and Europe, India has emerged as a central focus for global expansion. “The feeling is that staying out of India is not ideal, especially with the brand still holding strong recognition among potential buyers,” a source told. India’s evolving EV policy is also expected to be a major attraction for Ford.