Ford plans to repurpose the facility to focus on manufacturing cars for export markets.

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” says Kay Hart, president, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”

"Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide," Ford says in the statement.

"The move will see the facility re-purposed to focus on manufacturing for export to global markets," Ford says in a statement. The cars that Ford plans to make at the facility and other details will be announced later, the company says.

The announcement comes two days after Tamil Nadu chief minister MK Stalin said he had a very engaging discussion with the team from Ford where they explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu.

This also comes days after Jabil Inc, an American contract manufacturer for Apple, said it will establish a new electronics manufacturing facility in Tiruchirapalli, Tamil Nadu, with an investment of ₹2,000 crore which is expected to create jobs for 5,000 people. This development will make Jabil the fourth Apple supplier in the state, joining the ranks of Foxconn, Pegatron, and Tata Electronics. Earlier this year, Jabil started producing plastic bodies for AirPods in India, with key export markets being Vietnam and China.

In a separate development, HP Inc. and Dixon Technologies' subsidiary, Padget Electronics, have signed a deal to manufacture HP laptops, desktops, and all-in-one PCs in Tamil Nadu. Announced as part of the government’s PLI 2.0 scheme, this collaboration will have Padget Electronics oversee the manufacturing of these products.

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