Ford reconsidering plans for Tamil Nadu plant amid Trump tariffs

**Ford Reconsidering Plans for Tamil Nadu Plant Amid Trump Tariffs**

*By Akash Pandey | Oct 11, 2025, 02:27 pm*

US auto giant Ford is re-evaluating its plans for the Maraimalai Nagar plant near Chennai, according to The Economic Times. This reconsideration comes in response to the tariffs imposed by former President Donald Trump, which have compelled the company to reassess its financial strategy relating to the facility. A meeting of top executives from Ford’s Michigan headquarters is slated to further discuss the matter.

**Facility Status**

The Maraimalai Nagar plant has been non-operational since mid-2022 after Ford ceased vehicle production in India. Previously, the company had explored repurposing the facility for engine production. However, Trump-era tariff policies have increased costs for American companies exporting to the US, complicating investment plans for the plant.

**Strategic Shift: Focus Moves from India to Europe**

Amid shifting global economic conditions and rising political challenges, Ford is pivoting its focus away from India towards Europe. The company has made substantial investments in its European operations, including a $4.4 billion project in Germany, an electric vehicle initiative in Cologne, a parts manufacturing plant in the UK, and a series of electric vehicle launches supported by extensive battery research.

**Ford’s Continued Commitment to Chennai**

Despite the uncertainties, a Ford spokesperson reiterated the company’s ongoing commitment to its Chennai manufacturing facility. “Our position in relation to our Chennai manufacturing facility has not changed since we confirmed our intention to utilize the plant for manufacturing for export,” the spokesperson stated.

The spokesperson also highlighted that Ford maintains a strong presence in Chennai through its 12,000-strong Ford Business Services team based in the city.

**Government Dialogue**

The Tamil Nadu government continues to engage in regular discussions with Ford representatives concerning the plant’s future. The state government is keen to secure a decision on the plant’s use as part of its broader initiative to bolster Tamil Nadu’s position as a key auto manufacturing hub.

As the situation develops, both Ford and the Tamil Nadu government remain in talks to navigate the challenges and explore viable options for the Maraimalai Nagar facility.
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