Ford has confirmed its plans to re-enter the Indian market by submitting a Letter of Intent (LoI) to the Government of Tamil Nadu. The LoI outlines Ford’s intention to repurpose its Chennai plant for export-focused manufacturing. This move comes after a meeting between Ford executives and the Chief Minister of Tamil Nadu during his visit to the United States.
As part of Ford’s broader Ford+ growth strategy, the Chennai facility will be revitalized to serve global markets. Kay Hart, President of Ford International Markets Group, expressed gratitude for the continued support from the Tamil Nadu Government. “We are committed to leveraging the manufacturing expertise in Tamil Nadu to serve new global markets,” Hart said.
Earlier this year, Autocar Professional had reported Kay Hart’s visit to India to evaluate Ford’s re-entry strategy. Details on the specific type of manufacturing to take place at the Chennai plant will be revealed in the near future.
This announcement signals Ford’s renewed commitment to India as a key market in its global operations. Ford already employs 12,000 people in Tamil Nadu’s Global Business Operations, with plans to add another 2,500 to 3,000 jobs over the next three years. Alongside its engine manufacturing operations in Sanand, India holds Ford’s second-largest salaried workforce worldwide.
Efforts to repurpose Ford’s Maraimalai Nagar facility gained momentum in mid-2023, when multiple auto investors expressed interest in acquiring the site. Discussions between Ford and the Tamil Nadu government intensified in late 2023, with the company being given six months to make a decision on the facility’s future.
By early 2024, reports surfaced suggesting Ford was considering restarting operations at the Chennai plant—a proposal that Tamil Nadu’s Industries Minister, Dr. Rajaa, had strongly supported. In July 2024, Dr. Rajaa met with Ford leadership in Dearborn, Michigan, during which he emphasized Tamil Nadu’s advancements in the automotive sector, particularly in electric vehicles (EVs), with companies like Vinfast and Tata JLR choosing the state for their new plants.
Ford’s decision to return to India was reportedly solidified during the Chief Minister’s recent visit to the U.S., where he assured Ford’s leadership of full government support for their reintegration into Tamil Nadu’s automotive sector.
Ford continues to serve its one million customers in India, providing comprehensive support through service, aftermarket parts, and warranties
