Ford Re-Enters India with ₹3,250 Cr Focus on Engine Plant

Ford, a major US automaker, plans to reopen its Tamil Nadu manufacturing facility after closing its Maraimalai Nagar facility in 2021.

According to people with knowledge, the firm officials are scheduled to meet with State Industries Minister TRB Rajaa and Tamil Nadu Chief Minister MK Stalin today (Friday) in order to sign a ₹3,250-crore Memorandum of Understanding for the production of powertrains at its Chennai factory.

According to additional sources, Ford will utilize the plant to manufacture brand-new, next-generation engines. Production is anticipated to begin in 2029, and the plant is scheduled to have an annual capacity of 2,35,000 engines. More than 600 jobs are expected to be created.

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“⁠A letter of intent was signed in September 2024 for this when the CM Stalin visited the US,” they add.Later this year, the facility will be prepared for the new engine line-up's production. The majority of the manufacturing will be exported, while the final destinations are still unknown.

Ford's ambitious investment plans coincide with recent US tariffs and President Donald Trump's insistence that US businesses establish American manufacturing. 

According to a Businessline story earlier this year, Ford is attempting to restart the Tamil Nadu facility, but there have been delays and ongoing conversations because the Trump administration is focusing on a number of tariff-related concerns.

Two years after stopping production in India after three decades of presence, the US automaker announced in September 2024 that it would resume production at its Chennai plant. It confirmed its intention to use the facility for export-oriented production by sending a Letter of Intent (LoI) to the Tamil Nadu government.