Tamil Nadu CM Stalin Explores Revival of Ford’s Dormant Chennai Plant in U.S. Talks

Tamil Nadu Chief Minister M K Stalin recently met with senior representatives of Ford Motors during his visit to the United States, aiming to reignite a long-standing relationship with the automobile giant. The discussions centred around the potential revival of Ford’s manufacturing facility in Maraimalai Nagar, near Chennai, which has been dormant since the company exited the Indian market in September 2021.

Ford Motors, a prominent player in the global automotive industry, invested $2 billion in India over three decades but struggled to find a foothold in the highly competitive and price-sensitive Indian market. In 2021, the company ceased production operations and exited the Indian passenger vehicle market, citing the inability to sustain profitability. The Maraimalai Nagar plant, one of Ford’s two Indian facilities, has remained inactive since the exit. The company's other plant, located in Sanand, Gujarat, was sold to Tata Motors as part of Ford’s efforts to scale down its operations in the country.

Despite the plant’s closure, Ford retained ownership of the sprawling Maraimalai Nagar facility, which is now under consideration for new potential uses as the company evaluates its long-term strategy. Stalin's talks with Ford focused on encouraging the automaker to resume production at the Chennai facility while also exploring possibilities for further expanding Ford’s Global Capability Centre, which already operates in Chennai.

During the meeting, Stalin urged Ford to revive its manufacturing operations in Tamil Nadu, a state known for its robust automobile industry. The Tamil Nadu government highlighted the “three-decade partnership” between Ford and the state, emphasising the historical significance of the relationship and the potential economic benefits of resuming production. Ford’s delegation, including K Hart, Vice President of International Government Affairs, and Matthew Kotlowski, Ford India Director (Government Affairs), responded positively but remained cautious, with no immediate commitment to restarting operations.

Ford Motors had previously indicated interest in returning to the Indian market with electric vehicle (EV) models, which could potentially be produced at the Maraimalai Nagar plant. However, the company shelved those plans in 2022.

The Maraimalai Nagar plant had attracted interest from several potential buyers in recent years, but none of the negotiations resulted in a successful deal. In 2023, Ford entered discussions with the JSW Group to sell the plant, but the deal collapsed in the final stages. Similarly, Vietnam-based automaker VinFast considered purchasing the facility before opting to establish operations in Thoothukudi, Tamil Nadu. MG Motor India was also reportedly in talks to acquire the plant, but those discussions did not materialise either.

In addition to manufacturing operations, Stalin's discussions with Ford also touched upon the possibility of expanding the automaker’s Global Capability Centre in Chennai. This centre, which plays a crucial role in Ford’s global operations, provides a range of services such as engineering, technology support, and business process management. Further expansion of this facility would not only reinforce Ford’s presence in Tamil Nadu but also create new employment opportunities for skilled workers in the region.

The revival of Ford’s Maraimalai Nagar plant could have significant implications for Tamil Nadu’s automobile sector, which is a key contributor to the state’s economy. The state, often referred to as the “Detroit of India,” is home to numerous global automakers and has developed a robust ecosystem of auto component suppliers and manufacturers.