Ford Returns To India; To Create Thousands Of Jobs In Tamil Nadu

Ford Motor Company is planning to restart a manufacturing plant in Tamil Nadu, India, to focus on exports, potentially marking its return to a market it exited three years ago.

The company confirmed this on Friday, announcing that it had submitted a letter of intent to the Tamil Nadu government. This comes just two days after Chief Minister MK Stalin, mentioned ongoing talks with Ford to revive manufacturing operations for export purposes.

"We are thankful for the continued support from the Tamil Nadu Government as we explored different options for the Chennai plant," said Kay Hart, president of Ford International Markets Group. "This move aims to reaffirm our commitment to India, leveraging the manufacturing expertise available in Tamil Nadu to serve new global markets."

Job Creation

Ford currently employs 12,000 people in its Global Business Operations in Tamil Nadu, and this workforce is anticipated to expand by an additional 2,500 to 3,000 jobs over the next three years. When combined with its engine manufacturing operations in Sanand, India is home to Ford's second-largest salaried workforce globally.

Ford had ceased car production in India for the domestic market in 2021, citing difficulties in scaling up sales volumes. It stopped its export operations in 2022, effectively exiting the Indian car market, which is dominated by Asian competitors. The company sold one of its two Indian plants to Tata Motors in 2023, while the other plant, located in Chennai, was shut down.

Stalin said, "Had a very engaging discussion with the team from Ford Motors. Explored the feasibility of renewing Ford's three-decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world."

Although Ford exited the Indian market, it continues to explore viable options for its Chennai plant. Previously, Ford manufactured its EcoSport and Endeavour SUVs in India but captured less than a 2% share of the country's passenger vehicle market. The company had struggled for years to turn a profit and reported accumulated losses of more than $2 billion over the past decade due to weak demand for its new vehicles.

Ford's decision to leave the Indian market came after a failed attempt to establish a joint venture with Mahindra & Mahindra, which could have enabled the US automaker to continue production at a reduced cost. Despite its exit, Ford still builds engines for its Ranger pickup trucks at its facility in western India and sources parts from local suppliers for its global operations.