Ford to Resume Chennai Plant Operations for Engine Exports, No Car Production Plans

Ford has decided to restart its factory near Chennai, which produces and exports engines and related components. An official announcement is anticipated in this year's second quarter, according to sources. However, as part of this plan, Ford will not be producing automobiles in India.

Since mid-2022, the Maraimalai Nagar plant has not been in operation. After more than 25 years of trying to gain a firm foothold, Ford stopped making cars in India in 2021 and left the market in 2022.

The report claims that because of US policies that promote domestic manufacturing and increase import taxes, there were worries that Ford would scrap its plans for India.

This choice aligns with Ford's worldwide approach. After selling most of its factory to Tata Motors in 2022, the company now exports parts from Sanand, Gujarat.Export production will now be the primary focus of the Chennai plant.

Ford had previously contemplated introducing electric cars, such as the Mustang, Endeavour, and Everest, in India. However, as the business concentrates on exports, these plans have been shelved.

With all Ford dealerships closed in India, the company now only operates service centers. Industry experts believe that this demonstrates Ford's intention to focus solely on export operations from India.

Ford's Exit India Story 

Despite having over 25 years of experience in India, the company still had to contend with fierce competition from other automakers. Ford was unable to capture a sizable portion of the market because its cars were usually thought to be costly to maintain.

Ford announced in September 2021 that it would discontinue car production and sales in India due to significant financial losses — reportedly around $2 billion over ten years. It will close its factories in Chennai and Sanand by mid-2022. The company later sold the majority of its Sanand plant to Tata Motors, but left the Chennai plant idle.

Ford discontinued operations in India in 2022. It closed down factories in Chennai and Sanand.