Ford to restart Chennai plant, but for exports only: report

US carmaker Ford Motor Co. may use its plant in Chennai of Tamil Nadu state to make and export engines and related parts, The Economic Times reported, citing people aware of the development.

Vehicle manufacturing will not be a part of the automaker’s India strategy, the report said, adding that details of the plant will be available in the second quarter of this year.

The company’s Chennai factory will be repurposed for export-focused production and the decision is part of the automaker’s broader global strategy, the report added.

Ford stopped the production of vehicles in 2021 in India before exiting the country, where it remained a fringe player during much of its two-and-a-half decades in India.

It had tied up with Mahindra in 2020 before calling it to off to go solo. Next year, it announced its exit amid plunging sales and climbing losses.

In 2022, Ford sold its plant in Gujarat to Tata Motors Ltd and shut the Chennai factory.

In September last year, Tamil Nadu state chief minister met officials of Ford in the US for talks on the future of the shuttered plant.

Subsequently, the car company submitted a letter of intent to the Tamil Nadu government for using its Channai unit solely for sale.