Ford confirms India re-entry plans, signs LoI with TN govt

Ford today announced that it has submitted a Letter of Intent (LoI) to the Government of Tamil Nadu, confirming its intention to utilize the Chennai plant for manufacturing for export. The announcement follows a meeting between Ford leadership and the Chief Minister of the Government of Tamil Nadu as part of his visit to the United States. 

This strategic move will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.

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

Autocar Professional had exclusively reported earlier in March this year, that Kay Hart had visited India to reassess its re-entry plans in the country. 

Further information about the type of manufacturing and other details will be disclosed in due course.

The announcement reaffirms Ford’s commitment to India as a critical market for the company's global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.

The government’s efforts to find use for the Ford facility in Maraimalai Nagar intensified in June 2023, when several potential auto investors expressed interest in acquiring the site for their operations. In July 2023, the Minister embarked on a visit to San Francisco, where he initiated talks with Ford USA on the future of the facility and the associated land. Ford requested six months to evaluate the situation and return with a decision.

In October-November 2023, several rounds of discussions were held between the Industries Department and Ford regarding possible ways forward, both online and in person in Chennai, but no decision was taken. By early 2024, there were reports that Ford was leaning toward restarting its operations at the facility—a proposal that Minister Dr. Rajaa had been consistently advocating.

In July 2024, Dr. Rajaa visited Ford's main factory in Dearborn, Michigan,  near Detroit, where he met with Ford’s leadership and highlighted the rapid advancements in Tamil Nadu's Automotive sector and especially in EVs with Vinfast and Tata JLR choosing TN for their new plants. He emphasised the state’s rapidly growing EV ecosystem, the increasing demand for EVs and the significant progress Tamil Nadu has made since 2021, when Ford had exited India. Dr. Rajaa also highlighted the value of Ford’s Maraimalai Nagar facility, further strengthening the state's case.

Finally the deal clincher came during the recent visit to the US, when the Chief Minister personally assured Ford’s leadership that the Government of Tamil Nadu would fully support their return and work closely with them to ensure a smooth reintegration into the state’s automotive landscape. Those in the know say that the consistent follow ups by the Minister and the CMs personal backing convinced Ford to take a positive decision.

Ford also continues to serve its one million customers in India with comprehensive customer support, including service, aftermarket parts, and warranty support.