The move follows a recent meeting between Ford officials and Tamil Nadu Chief Minister MK Stalin during his visit to the US.
Under the new strategy, the Chennai facility will be tailored to focus specifically on exporting vehicles to international markets, in line with Ford’s broader growth strategy, Ford+.
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Kay Hart, president, Ford International Markets Group, said: “We are grateful for the continued support of the Tamil Nadu government as we explore different options for the Chennai plant.”
He added that this decision underlines Ford’s continued commitment to India and its intention to leverage local manufacturing expertise to access new global markets. Further details on the types of vehicles to be produced and other specific details will be announced at a later date.
Ford currently employs 12,000 people in Tamil Nadu and plans to expand its workforce by an additional 2,500 to 3,000 jobs over the next three years.
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Ford also pledged to continue supporting its one million Indian customers through after-sales support, spare parts and warranty services.
Ford had stopped car production in India three years ago due to difficulties in boosting sales in a market dominated by Asian competitors. The company had also been exploring the possibility of using its Indian plant for exporting electric vehicles.
The production halt came after a failed joint venture deal with Mahindra & Mahindra that would have allowed Ford to continue operations at a lower cost.
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