Ford has finally finalized plans to use their passive Chennai feature for construction and exporting components, according to sources familiar with the case allegedly talking to ET.
The company will reveal the nuances of the initiative in the second quarter of this year. The scheme excludes vehicle manufacturing in India.
“Ford is going to make the engine at Chennai plant,” a source confirmed. “This (convenience) will be renovated for export-centric production. This decision is part of Ford’s broad global strategy.”
The US car manufacturer Ford stopped vehicle production in India in 2021 and exiting the next year, causing a limited market presence in its 25 -year operation in rapid expansion in the South Asian motor vehicle market.
Ford’s India Plan
The facility of Marimalai city near Chennai has been inactive since mid -2012.
Although discussion was going on to revive the plant, recent speculation suggested that Ford could give up its India’s plans, especially considering the Domestic Manufacturing initiative of Trump administration and implementation of import duties.
Two Indian government officials confirmed that the plans were moving forward, although they remained tight about the specific products slapped for construction in the facility.
Confirming another source, “Senior Ford officials have recently held a high-level discussion with the Tamil Nadu government, where they have reiterated their commitment to India.”
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The engine manufacture initiative aligns with Ford’s global strategic direction, which is in accordance with sources talking to Financial Daily. The company maintains its export operations from Sanand, where it transferred 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, according to one person, according to one person, according to one person.
Earlier, Ford introduced electric vehicles in India and studied the viability of products including Endeavor, Everest and Mustang. These initiatives are disorganized in favor of the new export-centered approach.
After closing its Indian dealership network while maintaining service centers, industry analysts suggest that Ford operations are now specially focused on export.
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