KATHMANDU: Ford Motor Company is reconsidering the future of its Maraimalai Nagar plant near Chennai, India, which has remained idle since mid-2022.
The American automaker is weighing options to either restart operations or write off its investment as recent U.S. trade policies under President Donald Trump have altered its export economics.
According to The Economic Times, senior executives from Ford’s Michigan headquarters are expected to meet soon to decide the plant’s fate. The company had earlier explored using the facility for engine manufacturing and export operations.
However, new tariff measures have made shipments to the U.S. more expensive, impacting the plant’s viability.
Ford stopped vehicle production in India in 2021 as part of its global restructuring strategy. Since then, it has shifted focus toward Europe, where it has committed about $53 million to expand operations in Germany, launch new EV projects in Cologne and develop R&D hubs in the UK.
Responding to queries, a Ford spokesperson said the company’s stance on the Chennai facility remains unchanged from late 2024, when it confirmed plans to utilize the site for export manufacturing. “Further details will be shared in due course,” the spokesperson added.
Ford continues to operate its 12,000-member Ford Business Services team in Chennai, which provides IT, finance and analytics support for global operations.
The company also remains in talks with the Tamil Nadu government, which has been seeking clarity on Ford’s future manufacturing plans as the state pushes to strengthen its auto industry base.
