Ford to Manufacture and Export Engines from Chennai Plant
US Automaker’s New Plans for India
According to sources, Ford plans to use its Chennai facility for engine and component production. The company will announce the details in Q2 2023. This plan does not include vehicle manufacturing in India.
“Ford will produce engines at the Chennai plant,” a source confirmed. “It will be repurposed for export-focused production as part of Ford’s broader global strategy.”
Ford stopped vehicle production in India in 2021 and left the market the following year. However, it maintained a limited presence during its 25-year operation in the rapidly expanding South Asian automotive market.
Ford’s India Plans
- The Maraimalai Nagar facility near Chennai has been inactive since mid-2022.
- Although discussions about reviving the plant had been ongoing, recent speculation suggested Ford might abandon its India plans.
- Two Indian government officials confirmed the plans are proceeding, but they remained tight-lipped about the specific products to be manufactured at the facility.
- “Senior executives at Ford have had high-level discussions with the Tamil Nadu government recently where they reiterated their commitment to India,” another source confirmed, verifying that the plant would produce engines.
The engine manufacturing initiative aligns with Ford’s global strategic direction, according to sources who spoke to the financial daily. The company maintains its export operations from Sanand, where it transferred the majority of its manufacturing facility to Tata Motors two years ago.
Sources indicate that export-oriented projects are in their final stages, with formal announcements expected soon, according to an individual familiar with the developments.
Previously, Ford explored introducing electric vehicles in India and studied the viability of products including the Endeavour, Everest and the Mustang. These initiatives appear to have been deprioritised in favour of the new export-centric approach.
Following the closure of its Indian dealership network whilst maintaining service centres, industry analysts suggest Ford’s operations are now exclusively focused on exports.
