A Ford Comeback: Two Years After India Exit, Ford Motor To Restart Chennai Plant, Hire 3,000 Employees

Two years after making India exit, the US automaker Ford Motor is all set to re-enter India with a renewed vigour. Ford Motor announced today that it will restart its manufacturing plant in Chennai to boost exports, along with hiring another 2,500-3,000 employees. Kay Hart, President of Ford International Markets Group, stated that the company's recent move highlights their ongoing commitment to India, with plans to leverage the manufacturing expertise in Tamil Nadu to serve new global markets.

In a LinkedIn post, she mentioned that the company has submitted a letter of intent (LOI) to the Tamil Nadu government, indicating Ford's intention to use its Chennai plant for export-oriented manufacturing.

This decision comes after several discussions with the Tamil Nadu government. Hart acknowledged their support as Ford explored different options for the plant, noting that more details regarding the type of manufacturing and target export markets will be shared later. Ford had halted its operations in India in 2021 due to low sales and financial losses in the competitive domestic automotive market.

Tamil Nadu Chief Minister MK Stalin had posted on social media that he had a productive discussion with the Ford Motor team, exploring the possibility of renewing the company's three-decade partnership with the state, aiming to once again manufacture in Tamil Nadu for global markets. During his visit, the Chief Minister also met with executives from Google, Apple, and Microsoft, securing investment agreements for Tamil Nadu.

Hart also indicated that the decision would contribute to Ford's growing workforce in Chennai. Ford's global Ford Business Solutions team in the city already has over 12,000 employees, with plans to add another 2,500 to 3,000 in the coming years. Additionally, Ford operates an engine manufacturing facility in Sanand, Gujarat. India is Ford's second-largest employee base worldwide.