Ford Reconsiders Its Plans For Return To India Due Tariff Measures Of Trump Administration
Ford Motor Company is reportedly reconsidering its return to India, with its idle Chennai plant back under internal review. Shifting corporate priorities have kept the Maraimalai Nagar facility non-operational since mid-2022. Trump administration’s proposed tariff measures have further complicated Ford’s plans, potentially becoming a tipping point.
Executives at Ford’s Michigan headquarters are expected to meet soon to decide the facility’s future. The automaker had initially planned to use the plant for engine exports. However, changing trade conditions and evolving global strategies have made the project financially uncertain for the company.
Insiders suggest the company now has two options: restarting production or writing off the investment entirely. Reportedly, internal sentiment shifted from cautious optimism to growing concern. One executive bluntly stated, “India is no longer a priority market” for Ford.
Instead, the American automaker is refocusing its energy on Europe and electric vehicle development. Ford invested Rs. 4.4 billion in its German operations and launched an EV initiative in Cologne. It is also building component hubs and battery R&D centres in the UK as part of its new strategic approach.
Outlook
Officially, Ford maintains its unchanged position regarding the Chennai facility. “Our position in relation to our Chennai manufacturing facility has not changed since late 2024,” a spokesperson said. Meanwhile, the Tamil Nadu government continues to press Ford for clarity to revive local manufacturing and employment.
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