US auto major Ford is revisiting its strategy for the Maraimalai Nagar plant near Chennai, with top executives expected to hold a meeting to decide the facility’s future, people familiar with the matter told ET. “The Trump tariffs have made the company reassess the financials underlying the original plan,” one source said. The company could either write off its investment or commence operations, the source added.The Maraimalai Nagar plant has remained non-operational since mid-2022, following the halt of vehicle production in India the previous year. In March, ET had reported that Ford was considering engine production at the facility. However, tariffs imposed on exports to the US disrupted investment plans for several American companies, including Ford, forcing a strategic rethink. “India is no longer a priority market,” said a source familiar with the matter, noting that Ford is now focusing on Europe.

In Europe, the company has committed tens of billions in fresh investments, including a Rs 4.4 billion infusion into Germany, an electric vehicle initiative in Cologne, a component manufacturing hub in the UK, and multiple electric model launches backed by intensive battery R&D.A Ford spokesperson said the company’s position on the Chennai facility “has not changed from late 2024, when we confirmed our intention to utilise the plant for manufacturing for export. Further information about the type of manufacturing and other details will be disclosed in due course.” The spokesperson also highlighted the presence of the 12,000-strong Ford Business Services team in Chennai, which provides software engineering, IT, finance, accounting, and analytics services globally.Despite official statements, insiders suggest the company is weighing options while engaging with the Tamil Nadu government, signalling potential revival of operations. The state government has urged Ford to take a decision, as it looks to strengthen Tamil Nadu’s position as a major auto manufacturing hub.