Ford’s expanded vision for the Chennai facility hints at long-term investment in India, as the plant will create job opportunity, skill development and potential local market introduction once the demand for hybrids and EVs strengthens in India.
Ford is set to make a fresh start at its Chennai manufacturing plant, aiming to balance hybrid, electric and internal combustion engine (ICE) production to serve growing Southeast Asian and potentially Indian markets. This strategic focus on hybrids and ICE, alongside EVs, reflects Ford’s calculated approach to managing risks amid fluctuating demand for electric vehicles globally. By prioritizing affordability, the American auto giant plans to produce compact models for export, meeting regional demand while also considering future opportunities in the Indian market.
This decision comes at a critical time when EV demand shows signs of uncertainty in major markets, including China and Southeast Asia. Insiders reveal that Ford’s leadership, under CEO Jim Farley, is actively developing compact EV and hybrid architectures for upcoming models. By including hybrid and ICE options, Ford aims to address global market unpredictability while ensuring the Chennai plant’s production remains sustainable. However, Ford has yet to finalize the details, with sources indicating that a conclusive production strategy will be announced after the U.S. elections this December.
Ford’s commitment to reviving the Chennai plant began last month after high-level meetings between Ford officials and Tamil Nadu’s Chief Minister MK Stalin in the U.S. The company has submitted a Letter of Intent to the Tamil Nadu government, highlighting its dedication to exports. Although Ford’s current focus remains international, industry experts suggest that if India’s demand for hybrids and EVs increases, the company may consider expanding to the domestic market as well, marking a new chapter for Ford in India.
