Ford Set To Return To India After Meeting Tamil Nadu CM, Will Repurpose Chennai Plant For Export Production

In a move to return to India, Automaker Ford submitted a letter to the Tamil Nadu government on Friday (13 September) expressing its intent to repurpose its Chennai plant for manufacturing vehicles for exports.

The Chennai plant will be repurposed for the Ford+ growth plan, focusing on manufacturing for global markets. However, further details about the type of manufacturing have not been disclosed yet.

Ford's decision comes after the automaker's leadership met Tamil Nadu Chief Minister M K Stalin during his US visit. The automaker had left India in September 2021 but its coming back was always expected.

"We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant," president of Ford International Markets Group Kay Hart said.

"This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets," he added.

Ford currently has 12,000 employees working in its Global Business Operations in Tamil Nadu, and this figure is projected to increase by 2,500 to 3,000 over the next three years, as per the company's press release.

Along with its engine manufacturing operations in Sanand, India now represents Ford's second-largest salaried workforce globally, Economic Times reported.

Last year, Ford even planned to sell its Tamil Nadu plant to JSW Group after selling its Gujarat plant to Tata but canceled the deal fueling speculations of its return to India.

The success of foreign brands like Kia and MG Motors in India in a short period of time might also have encouraged Ford to come back, which now also plans to expand into the electric vehicle segment.