Ford's Chennai Factory Almost Ready To Restart, But Will Only Sell Everest SUV for Now
After a quiet spell following its exit from India’s mass-market car segment in 2021, Ford is gearing up for a partial comeback. The American carmaker is restarting operations at its Chennai facility, not to flood the Indian market with models, but to support its global export strategy.
While the return has stirred hopes among Ford loyalists in India, the company’s domestic plans remain limited - at least for now. The only model likely to go on sale here in the near term is the rugged and feature-rich Ford Everest SUV, known previously to Indians as the Ford Endeavour.
Chennai Plant to Restart by Late 2025 - But for Exports
According to a report on Financial Express, Ford’s Chennai plant, which had been lying dormant since operations ceased, is now being prepared for a restart, with activity expected to resume in the second half of 2025. This move is primarily export-oriented.
Manufacturing in India offers a significant cost advantage thanks to lower labour costs and established supply chains, making it an attractive base for global production. This is particularly relevant at a time when global carmakers are under pressure to diversify production hubs away from China.
What’s clear, though, is that this facility won’t be used to re-enter the Indian budget or mid-size segments. The game plan is focused on manufacturing left-hand drive models for export to markets in the Middle East, Africa, and Latin America. India’s robust port infrastructure and its bilateral trade agreements further enhance its appeal as a manufacturing hub for exports.
Everest Likely to Be Ford’s Lone Domestic Offering
Among all the speculation surrounding Ford’s return, the one development that seems all but certain is the launch of the Ford Everest in India. This full-size ladder-frame SUV is currently sold in markets like Australia, Thailand, and South Africa, where it has earned a strong reputation for capability and comfort. Essentially, it’s the successor to the last-generation Endeavour that Ford sold in India until 2021.
The new Everest is bigger, bolder, and significantly more tech-heavy. It features a strong road presence, plush interiors, multiple terrain modes, and advanced driver assistance systems (ADAS) - putting it squarely in the league of the Toyota Fortuner, MG Gloster, and the recently launched MG Majestor.
While official launch timelines are yet to be announced, sources indicate that Ford may introduce the Everest to Indian buyers by early 2026, shortly after local production ramps up. This would allow the company to price the vehicle more competitively compared to fully imported models, which attract steep import duties.
Tariffs Make Local Assembly the Logical Choice
India levies high import tariffs - up to 100% on completely built-up (CBU) cars - which makes importing premium SUVs prohibitively expensive. By building the Everest locally, Ford can avoid these duties, allowing it to price the SUV more aggressively and better compete with established players like the Fortuner. This strategy also aligns with the government’s ‘Make in India’ initiative, which incentivises local manufacturing through policy benefits.
That said, Ford is likely to stick to the CKD (completely knocked down) or SKD (semi-knocked down) route initially, before scaling up to full local assembly depending on demand. This would also allow the company to test the waters without taking on the risk of large-scale investment too soon.
Electric Vehicles May Follow - Eventually
Beyond the Everest, there’s no immediate roadmap for additional models in India. However, Ford hasn’t ruled out launching EVs in the future. The company has made significant progress globally with electric models like the Mustang Mach-E and the F-150 Lightning, and these could potentially be considered for the Indian market if demand and infrastructure mature.
For now, though, there’s little more than speculation around Ford’s EV ambitions in India. The EV space here is still developing, with challenges around charging infrastructure, price sensitivity, and long-term policy stability. Until these barriers ease, Ford is expected to remain cautious.
How the Everest Could Shake Up the Segment
The premium SUV space in India has been largely dominated by Toyota’s Fortuner, with a few recent entrants trying to chip away at its stronghold. MG has brought in the Gloster and more recently, the Majestor, both of which aim to offer more luxury and features for the money. However, none have managed to fully dislodge the Fortuner's reputation for reliability and resale value.
This is where the Everest could find its niche. Ford had built a loyal customer base for the Endeavour, and the Everest picks up from where it left off - only better. With its new platform, diesel powertrains, multiple 4x4 options, and extensive feature list, it has the potential to be both a lifestyle SUV and a practical, long-term ownership choice. If priced smartly - ideally between Rs 45–55 lakh ex-showroom - it could offer buyers a compelling alternative that blends road manners with off-road chops.
A Cautious, Focused Return
Ford’s strategy is clear: minimise risk, utilise India’s cost-efficient manufacturing base for exports, and make a carefully measured return to the domestic market with a high-margin product. For Indian buyers, the return of the Everest offers renewed choice in the premium SUV category, but expectations of a full-fledged lineup should be kept in check - for now.
Whether this is a quiet prelude to a larger Indian comeback or a long-term export-focused strategy remains to be seen. But one thing is certain - the blue oval is back on the map.