After a three-year hiatus, Ford will reopen its Chennai plant in India. However, this time, Ford will focus on EVs as it faces a global comeback.
Ford India plant to reopen to export global EVs
Ford submitted a Letter of Intent (LOI) to the Tamil Nadu government earlier this month, outlining plans to restart its Chennai plant for export.
The move comes as part of the company's Ford+ program to boost future growth and profitability as the industry transitions to a new digital, electronic era.
“We appreciate the continued support from the Government of Tamil Nadu as we explore various options for the Chennai plant,” said Kay Hart, president of Ford International Markets Group. Hart explained that the plant will “serve new global markets.”
A source familiar with the matter said that this time Ford will focus more on producing EVs for export. Ford “realized that 2025 will be a turning point for the EV market in India,” the source said.
The source said MoneyControl that Ford will build a dedicated assembly line for EVs as “Making gasoline or diesel vehicles is no longer a profitable business.” This is a major shift in its focus on gas-powered vehicles in the country.
Once a supplier base is established, Ford will “start producing electric vehicles from its Chennai facility, and export them to global markets,” the source explained.
Ford Motor India said it preferred not to comment on the speculation and that “further details on the production model” would be revealed soon.
Electrek's Take
Although Ford has yet to officially confirm that the Chennai plant will be used for EVs, it could mark a milestone as the company aims to secure a position in the future of the industry.
Ford has pushed back or canceled several EV plans in the US. However, demand for electric vehicles is still growing in critical global markets such as Southeast Asia, parts of Europe, and South and Central America.
Low-cost EVs from China are flooding global markets, causing the US, Canada, and the EU to face huge import costs.
Chinese car manufacturers such as BYD are rapidly gaining market share in other global markets, such as Thailand, Singapore, Turkey, Brazil, and Mexico.
With affordable, efficient EVs emerging in new markets, BYD overtook Nissan and Honda in global EV sales for the first time in the second quarter.
BYD sold 980,000 vehicles in Q2, representing a 40% increase compared to last year. China's EV leader is fast approaching Ford. Ford's total sales reached 1.14 million in Q2, up slightly from 1.12 in 2023.
Ford is shifting its focus to smaller, more profitable EVs to fend off the competition. Their team in California, filled with former employees of Tesla, Rivian, Lucid, and Apple, is building their low-cost platform. Like BYD, Ford appears to be looking to overseas production to boost growth.
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