US automaker Ford may use its Chennai plant to manufacture and export engines

TOI Business Desk / TIMESOFINDIA.COM / Mar 18, 2025, 11:18 IST

Text Size

Small
Medium
Large

Ford has finalised plans to repurpose its Chennai facility to manufacture and export engines, excluding vehicle production in India. The initiative aligns with Ford's global strategy and follows the company's exit from vehicle manufacturing in India in 2021.

US automaker Ford may use its Chennai plant to manufacture and export engines

US carmaker Ford stopped vehicle production in India in 2021.

Ford has reportedly finalised plans to utilise its dormant Chennai facility for manufacturing and exporting engines and associated components, according to sources familiar with the matter who spoke to ET.
The company will reveal the specifics of this initiative in the second quarter of this year. The plan excludes vehicle manufacturing in India.
"Ford is going to be making engines at the Chennai plant," confirmed one source. "It (the facility) will be repurposed for export-focused production. This decision is part of Ford's broader global strategy."
US carmaker Ford stopped vehicle production in India in 2021 and exited the following year, having maintained a limited market presence throughout its 25-year operation in the rapidly expanding South Asian automotive market.

Ford's India plans

The Maraimalai Nagar facility near Chennai has remained inactive since mid-2022.
Although discussions about reviving the plant had been ongoing, recent speculation suggested Ford might abandon its India plans, particularly considering the Trump administration's domestic manufacturing initiatives and implementation of import duties.
Two Indian government officials confirmed the plans are proceeding as intended, though they remained tight-lipped about the specific products slated for manufacture at the facility.
"Senior executives at Ford have had high-level discussions with the Tamil Nadu government recently where they reiterated their commitment to India," confirmed another source, verifying that the plant would produce engines.
Also Read | Trump tariffs impact: Is a US recession likely and does India need to worry about it?
The engine manufacturing initiative aligns with Ford's global strategic direction, according to sources who spoke to the financial daily. The company maintains its export operations from Sanand, where it transferred the majority of its manufacturing facility to Tata Motors two years ago.
Sources indicate that export-oriented projects are in their final stages, with formal announcements expected imminently, according to an individual familiar with the developments.
Previously, Ford explored introducing electric vehicles in India and studied the viability of products including the Endeavour, Everest and the Mustang. These initiatives appear to have been deprioritised in favour of the new export-centric approach.
Following the closure of its Indian dealership network whilst maintaining service centres, industry analysts suggest Ford's operations are now exclusively focused on exports.
Also Read | ‘Elon Musk doing amazing work, but…�? Why Sajjan Jindal believes Tesla won’t find it easy in India

Stay informed with the latest business news, updates on bank holidays and public holidays.

About the Author

TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

End of Article