The Blue Oval has been on a see-saw ride where India re-entry strategy is concerned. This has been one of the most buzzy topics in the automotive town for some time. Ford is still contemplating its India re-entry strategies and the official announcement of a definitive plan has been postponed to late summer, as per a recent report.
Ford India Re-Entry
The company pulled the plug in Indian market, but still holds a major manufacturing facility in Chennai, while the Sanand facility was sold to Tata Motors. There have been various activities from Ford, suggesting a potential re-entry into the now attractive Indian market. Even a few test mules of Ford Everest (Endeavour) and Ranger pickup truck have been spied in India.
A recent report mentioned that Ford will announce its final decision about India re-entry in late summer of 2025. Citing sources with direct knowledge of this matter, the report mentions the company board discussed this matter in January 2025 and decided not to make any announcements right now.
This delay will supposedly be utilised to re-think Ford’s strategies for Indian market, which has emerged as a major automotive market in the world. Ford was supposed to release a detailed plan on India re-entry, but is now postponed to late summer, while the company re-thinks strategies, considering multiple parameters.
Ford maintains that they are committed to utilise their Chennai facility to serve global markets as of now. The company didn’t provide further information regarding the Chennai facility or a potential re-entry into the Indian market at this particular time.
Will Ford continue its manufacturing presence in India?
While the speculations suggest a positive outlook towards Ford’s India re-entry, there are other factors to consider, which are leading to this delay. For starters, the company’s facility in Maraimalainagar near Chennai is around three decades old and has to be significantly overhauled to bring it to modern standards, commanding an investment of up to USD 300 Million (Rs 2,614 Cr), as per industry experts.
When the American car giant was operating in India, the company found great success in sub 4m SUV segment with Ecosport. Ford also had a significant presence in large SUV segment, where Toyota has been a dominant force. However, there were fewer mass market options back then with Figo, Aspire and Freestyle witnessing decline in sales and popularity.
