Ford Motor Company is considering a shift in its strategy for the Chennai plant, potentially focusing on hybrid and internal combustion engine (ICE) components alongside electric vehicles (EVs) in response to fluctuating global demand. Industry insiders suggest that recent volatility in EV demand, especially in markets like China and Southeast Asia, has prompted Ford to hedge its risks by including hybrid and ICE vehicle options.
According to sources close to the matter, a senior team under Ford Motor CEO Jim Farley is working on a portfolio of new compact models, which may include both electric and hybrid variants, initially intended for export to Southeast Asia. Ford India confirmed that further details on the manufacturing plans would be shared in due time.
The final decision on the Chennai plant’s production direction is expected in December, following the US elections. Ford’s strategy aims to respond to the steady but slower growth in global EV markets, and industry analysts note that the combination of hybrids and ICE models could help Ford manage potential risks while aligning with existing demand in the Indian market.
Ford recently reaffirmed its commitment to Tamil Nadu, submitting a Letter of Intent to the state government and signalling its intent to repurpose the Maraimalainagar facility for global export production as part of the company’s Ford+ growth plan. This move marks Ford’s re-entry into India after meetings between Ford executives and Tamil Nadu’s top leadership, including Chief Minister MK Stalin.
The Chennai plant may play a critical role in Ford’s global operations by producing a balanced mix of hybrid and ICE vehicles that respond to evolving market demands.
