Ford Aims to Produce EVs at TN Plant, Marking Its Re-entry into the Indian Market

Ford Motor Co. is exploring plans to manufacture electric vehicles at its plant in Tamil Nadu, Southern India, as it seeks to re-enter the world’s third-largest car market three years after announcing the closure of its local factories.

In an interview, Tamil Nadu Industries Minister T.R.B. Rajaa stated that Ford has not yet finalised its manufacturing plans for India but suggested that electric vehicles could be on the horizon. “If you look at the trend, investors coming to Tamil Nadu in recent years have introduced their EV lines,” Rajaa noted. “They recognise that the ecosystem is ready, and discussions are ongoing in that direction.”

Ford joins a growing list of domestic and international automakers, including Tata Motors Ltd. and Vietnamese manufacturer VinFast Auto Ltd., who are investing billions to establish manufacturing plants in Tamil Nadu. In mid-September, Ford announced plans to utilise its Chennai facility for exports after sending a letter of intent to the Tamil Nadu state government.

This development aligns with India’s initiative to enhance EV manufacturing in the country. Earlier this year, the federal government reduced import taxes for foreign carmakers that commit to investing $500 million in India. Tamil Nadu has positioned itself as a key manufacturing hub for EVs in the country.

Currently, Ford employs 12,000 people in global business operations in Tamil Nadu, with expectations to increase that number by up to 3,000 jobs within the next three years, according to a company statement from last month.