After a three-year break, Ford is set to reopen its Chennai plant in India. However, This time, Ford will focus on EVs as it faces a global comeback.
Ford India plant will reopen to export global EVs
Ford submitted a Letter of Intent (LOI) to the government of Tamil Nadu earlier this month, outlining plans to restart its Chennai plant for export.
The move comes as part of the company’s Ford+ plan to drive future growth and profits as the industry shifts to a new digital, electric era.
“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” Kay Hart, president of Ford Internation Markets Group, said. Hart explained that the plant will “serve new global markets.”
A source familiar with the matter said Ford’s focus this time will be on manufacturing EVs for export. Ford “realized that 2025 will be the turning point for the EV market in India,” the source added.
Ford Explorer EV production in Cologne (Source: Ford)
The source told MoneyControl that Ford will create a dedicated assembly line for EVs as “Building petrol or diesel vehicles will not be a profitable venture anymore.” This is a significant shift from its focus on gas-powered vehicles in the country.
Once the supplier base is established, Ford will “start producing electric cars from its Chennai facility, exporting them to global markets,” the source explained.
Ford Mustang Mach-E (Source: Ford)
Ford Motor India said it preferred not to comment on the speculation and that “further information about the type of manufacturing” would be revealed shortly.
Electrek’s Take
Although Ford has yet to officially confirm that the Chennai plant will be used for EVs, it could mark a significant milestone as the company aims to secure a position in the industry’s future.
Ford has pushed back or canceled several EV initiatives in the US. However, demand for electric cars is still surging in critical global markets like Southeast Asia, parts of Europe, and South and Central America.
Low-cost EVs from China are flooding global markets, causing the US, Canada, and the EU to tack on significant tariffs on imports.
Chinese automakers like BYD are quickly gaining market share in other global markets, such as Thailand, Singapore, Turkey, Brazil, and Mexico.
With affordable, efficient EVs rolling out in new markets, BYD topped Nissan and Honda in global EV sales for the first time in the second quarter.
BYD sold 980,000 vehicles in Q2, representing 40% growth from last year. The Chinese EV leader is quickly approaching Ford. Ford’s wholesales reached 1.14 million in Q2, up slightly from the 1.12 in 2023.
Ford is shifting its focus to smaller, more profitable EVs to fend off the competition. Its team in California, filled with ex-Tesla, Rivian, Lucid, and Apple workers, is developing its low-cost platform. Like BYD, Ford appears to be eyeing overseas production to boost growth.
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A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
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Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
XCMG battery swap crane; via Etrucks New Zealand.
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.