Ford Initiates Preparations to Restart Operations at India, Chennai Plant

Ford has begun preparations to restart the first phase of operations at its Chennai plant.

"There was some slowdown (in the process) due to the regime change in the US, but now things are back on track," Rajaa said.

According to the news report, the automobile company has also finalised the components that will be manufactured at the Chennai facility, and preparation work is currently underway.

However, it is still unclear whether Ford will resume full vehicle production as planned. According to a government official quoted in the report, Ford might start up production again in the second half of 2025.

Ford's re-entry into India has been questioned since US President Donald Trump's aggressive tariff policies aimed at restoring manufacturing jobs in the United States, and the most recent update comes amid ongoing uncertainty surrounding this issue.

Trump's tariffs affect

All industries around the world were affected by Trump's tariffs on a number of nations, but major industries like the auto industry were especially hard hit. Since many nations are still negotiating a trade agreement with the United States, businesses are unable to decide what to import and export. These discussions are intended to avoid the high import tariffs imposed by Trump.

This global market uncertainty has also had an impact on Ford, a major US automaker. According to the report, the company had a limited plan to export engines, gear systems, and transmissions rather than complete vehicles. However, this limited plan was hampered when the Trump administration imposed a 25% tax on imported cars and major parts, making it unclear whether using India as an export base was still viable.

But, in a major policy shift, Trump signed orders on Tuesday that relieve some of the pressure. The 25% tax will remain in place, but carmakers that complete their vehicles in the US will receive a 15% rebate, lowering costs for those willing to do the final assembly in the US.