Ford is reportedly reconsidering its return to India, with its dormant factory in Chennai being reconsidered. Plans to resume operations at the Maraimalai Nagar facility have reached a dead end – and Donald Trump’s tariff bomb may be the tipping point, the Economic Times reported, citing sources.
Executives at the US automaker’s Michigan headquarters are expected to meet soon to decide the fate of the Tamil Nadu facility, which has been idle since mid-2022. The company had previously explored using the plant to make engines for export, but changing global priorities and rising trade barriers have changed the calculus.
“Trump’s tariffs made the company re-evaluate the financials behind the original plan,” a source familiar with the matter told ET.
Options now include restarting operations or writing off the investment entirely. The internal mood shifted from cautious optimism to concern, with one person saying bluntly: “India is no longer a priority market.”
Instead, Ford is doubling down on its efforts in Europe. The company has already pumped 4.4 billion rupees into its German operations, launched an electric vehicle initiative in Cologne, and is building component centers and battery R&D centers in the UK – all part of an overall pivot towards electric vehicles in more strategic markets.
Officially, Ford says nothing has changed: “Our position regarding our manufacturing facility in Chennai has not changed since late 2024,” a company spokesperson said, adding that details regarding the type of manufacturing will be revealed “in due course.”
The Tamil Nadu government is said to be pressuring Ford to clarify its plans, keen to revive activity at the plant and boost its automotive footprint in the state.
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