Chennai: Ford Motor Company is reportedly reconsidering its operations in India, with plans to restart its idle Maraimalai Nagar plant facing fresh hurdles, industry sources told The Economic Times. The US automaker’s internal review comes amid growing global trade uncertainties, including Donald Trump’s announced 100% tariffs on Chinese imports, which may have influenced the company’s strategy.
Chennai plant under review
Ford’s Chennai facility has remained dormant since mid-2022. Initially, the company explored using the plant to manufacture engines for export, but changing global priorities, rising trade barriers, and financial considerations have reportedly forced executives to reassess the plan.
“The Trump tariffs have made the company reassess the financials underlying the original plan,” a source familiar with the matter said. Options on the table include either restarting operations or writing off the investment altogether. The internal mood has shifted from cautious optimism to concern, with some officials reportedly stating, “India is no longer a priority market.”
Global pivot toward EVs and Europe
Ford is increasingly focusing on its European operations. The company has invested ₹4.4 billion in Germany, launched an EV initiative in Cologne, and is developing component hubs and battery R&D centres in the UK. These moves are part of a broader strategy to prioritise electric vehicle production and more strategic markets.
Officially, Ford maintains that nothing has changed regarding its Chennai operations. A company spokesperson said, “Our position in relation to our Chennai manufacturing facility has not changed from late 2024. Details on the type of manufacturing will be disclosed in due course.”
Tamil Nadu government seeks clarity
The Tamil Nadu government is reportedly urging Ford to clarify its plans, hoping to revive activity at the Maraimalai Nagar plant and strengthen the state’s automotive footprint. With uncertainty over investment decisions and global trade dynamics, stakeholders in India await a formal announcement from the automaker.