Ford to revive Chennai plant for new purpose
What's the story
Ford is said to be planning to repurpose its Chennai facility for engine manufacturing and export, according to the Economic Times.
The strategic move comes after the company's exit from vehicle production in India in 2021.
One source confirmed to ET that "Ford is going to be making engines at the Chennai plant," adding it will be restructured for export-focused production as part of the company's broader global strategy.
Facility status
Maraimalai Nagar facility inactive since mid-2022
The Maraimalai Nagar facility, near Chennai, has remained dormant since mid-2022. Despite talks of reviving the plant, there were recent rumors that Ford may ditch its India plans.
This was mainly due to the Trump administration's domestic manufacturing push and import duties.
However, two Indian government officials confirmed plans are on track as intended without divulging specific products to be manufactured at this facility.
Strategic alignment
Ford's engine manufacturing initiative aligns with global strategy
The decision to manufacture engines is in line with Ford's global strategy.
The company currently operates its export business from Sanand, where it transferred most of its plant to Tata Motors two years ago.
Export-oriented projects are nearing completion, and formal announcements are expected soon, an individual familiar with the developments told ET.
Shift in focus
Ford's focus shifts from electric vehicles to exports
Earlier, Ford had contemplated launching EVs in India and evaluated the feasibility of products such as Endeavour, Everest, and Mustang.
However, these efforts appear to have been deprioritized in favor of the new export-centric strategy.
After its exit from India dealership network while keeping service centers, industry analysts say Ford's operations are now limited to exports.