Ford to restart operations in India with ₹3,250 crore plan focused on engine manufacturing

American automaker Ford has confirmed that its Chennai facility will be repurposed to manufacture all-new, next-generation engines, marking a major step in its renewed manufacturing presence in India.

Following the letter of intent signed in September 2024, the company on Friday announced the signing of a memorandum of understanding (MoU) with the Tamil Nadu government. The agreement outlines a strategic plan that is in line with the Ford+ vision and leverages India’s manufacturing expertise for global operations.

Under the plan, Ford will invest ₹3,250 crore to set up powertrain manufacturing operations at the Chennai plant. Site preparation and investment work will begin later this year. The facility is expected to have an annual capacity of 2.35 lakh (235,000) engines, with production targeted to begin in 2029. The project is expected to create over 600 direct jobs and additional indirect employment across the industry.

Jeff Marantich, president of Ford’s International Markets Group, said the decision reaffirms the important role of the Chennai plant in the company’s manufacturing network. He thanked the Tamil Nadu government for the support, saying, “This reinforces our commitment to leverage India’s manufacturing capacity for future products.”

Chennai’s new engine lineup will feature advanced technology, with specific details on engine types and export markets to be shared closer to production. The plant will complement Ford’s existing engine manufacturing operations in India, which already export to global markets.

Tamil Nadu Industries Minister Dr TRB Raja said Ford’s decision reflects confidence in the state’s industrial ecosystem. “This move will further energize Tamil Nadu’s automotive sector and take another step towards the future of mobility with next generation engine production,” he said.

Ford currently employs approximately 12,000 people across its global business operations in Tamil Nadu. The company continues to support its existing Indian customers through service, aftermarket parts and warranty programs.

Ford ended vehicle production in India in 2021 after nearly three decades but retained its Chennai facility. Later the company sold its Sanand plant in Gujarat to Tata Motors. With this new investment, the Chennai site will re-enter production as part of Ford’s global engine manufacturing network.