Ford Motor Company, on Friday, officially submitted a Letter of Intent (LOI) to the Tamil Nadu Government, signalling its intention to repurpose the Chennai plant for manufacturing vehicles intended for export.
This decision follows a recent meeting between Ford’s leadership and Tamil Nadu Chief Minister M.K. Stalin during his visit to the United States.
Under the new strategy, the Chennai facility will be adapted to focus specifically on exporting vehicles to international markets, in line with Ford’s broader Ford+ growth strategy.
Kay Hart, president of Ford International Markets Group, stated, “We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant.”
She added that this move underscores Ford’s continued commitment to India and its intention to leverage local manufacturing expertise to access new global markets. Further details about the types of vehicles to be produced and other specifics would be announced later.
Ford currently employs 12,000 people in Tamil Nadu and plans to expand its workforce by an additional 2,500 to 3,000 jobs over the next three years.
Ford also committed to continuing support for its one million Indian customers through after-sales support, parts, and warranty services.
Ford had ceased car production in India three years ago due to challenges in boosting sales in a market dominated by Asian competitors. The company had also been exploring the possibility of using its Indian plant for electric vehicle (EV) exports.
The halt in production followed the unsuccessful negotiation of a joint venture with Mahindra & Mahindra, which would have enabled Ford to continue operations at a lower cost.