Ford Motor Company is evaluating changes in its strategy for its Chennai plant, with potential plans to focus on hybrid and internal combustion engine (ICE) vehicle components in addition to electric vehicles (EVs). This approach comes as the company assesses market volatility, particularly in China and Southeast Asia, which has affected EV demand.
Sources indicate that Ford’s senior team, led by CEO Jim Farley, is working on a range of compact vehicle models, including electric and hybrid options, intended initially for export to Southeast Asian markets. Ford India stated that further information on its production plans will be released in due course, and a final decision on the plant’s production direction is anticipated in December.
In alignment with its Ford+ growth plan, Ford recently submitted a Letter of Intent to the Tamil Nadu government to repurpose its Maraimalainagar facility for export-focused production. This move marks a potential re-entry for Ford in India, following discussions between Ford representatives and Tamil Nadu’s leadership.
According to analysts, incorporating hybrid and ICE models could help Ford manage potential risks in the current EV market while meeting ongoing demand in India.