Ford has announced plans to restart manufacturing at its Chennai plant in Tamil Nadu, which was previously used for vehicle production before the company ceased local sales operations in September 2021. The Chennai facility will now focus on producing vehicles for export markets.
While Ford has not confirmed any plans to re-enter the Indian market, the possibility remains open given India’s rise to become the third-largest car market globally. However, a significant challenge for Ford’s potential return is the absence of its sales network in the country, as only service and spare parts centers remain operational to support existing customers.
Ford began its operations in India in 1995, with manufacturing plants in Chennai, Tamil Nadu, and Sanand, Gujarat. The Chennai plant had an annual production capacity of 200,000 vehicles, while the Sanand plant could produce 240,000 vehicles and 270,000 engines annually. SUVs like the EcoSport and Endeavour were built at the Chennai plant, while the Sanand plant produced the Aspire sedan, Figo, and Freestyle hatchbacks.
In January 2023, Ford sold its vehicle manufacturing unit in Sanand to Tata Motors for Rs 725.70 crore, excluding taxes, though it continues engine production there. Ford’s service operations also remain active across India.
