Ford Motor Company announced on Friday that it will restart its factory in Chennai and use it for export purposes, marking a significant reentry into the Indian market after the company’s exit in September 2021.
The Maraimalai Nagar factory, which ceased production in August 2022, will be repurposed under Ford's Ford+ growth plan to focus on manufacturing vehicles for global markets.
Kay Hart, president of Ford's International Markets Group, revealed that the company has submitted a letter of intent to the Tamil Nadu government regarding the factory's new role.
This development follows a recent visit by Tamil Nadu Chief Minister M.K. Stalin to Ford’s headquarters in Dearborn, Michigan, where he encouraged the company to resume production in the state.
“We are pleased to announce that we have submitted a Letter of Intent to the Government of Tamil Nadu, outlining Ford’s intention to utilise our Chennai plant for manufacturing for export,” Hart said in a statement.
The repurposed factory aims to leverage Tamil Nadu’s manufacturing expertise to tap into new global markets. Ford expressed appreciation for the support received from the Tamil Nadu government during its decision-making process.
Additional details on the types of manufacturing and other specifics will be released in the future.
The move reinforces Ford’s commitment to India, a key market for the company’s global operations. Ford employs 12,000 people at its Global Business Operations in Tamil Nadu, with plans to increase this number by 2,500 to 3,000 jobs within the next three years.
The company also operates engine manufacturing in Sanand, Gujarat, making India Ford’s second-largest salaried workforce location worldwide.
Ford currently serves one million customers in India with services including customer support, aftermarket parts, and warranty support.
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