American automaker Ford revealed on Friday its plan to invest Rs 3,250 crore at its Chennai facility to manufacture next-generation engines. Having exited the Indian market in 2021, the company has signed a memorandum of understanding (MoU) with the Tamil Nadu government, which outlines a strategic direction that utilizes India’s manufacturing capabilities as part of the Ford+ initiative. Following site preparation and investment expected to commence later this year, the Chennai plant is projected to have a capacity of 2.35 lakh engines per year, with production anticipated to begin in 2029. The project is expected to create over 600 direct jobs, along with additional indirect employment opportunities across the industry.
Ford Motor Company’s president of International Markets Group, Jeff Marentic, expressed satisfaction in advancing the plans and emphasized the Chennai plant’s essential role in Ford’s manufacturing framework. He noted that this decision underscores their commitment to harnessing India’s manufacturing strength for future products. The planned engine lineup for production in Chennai will incorporate all-new technology, with specific details regarding the engine types and export markets to be disclosed closer to the production start date. Tamil Nadu Industries Minister TRB Rajaa stated that Ford’s move to resume manufacturing in Chennai will invigorate the state’s recovering automotive sector. In addition to this manufacturing initiative, Ford currently employs around 12,000 individuals in its Global Business Operations in Tamil Nadu.
After halting vehicle manufacturing in India in 2021, the company submitted a Letter of Intent (LOI) to the Tamil Nadu government last year, indicating its intention to utilize the Chennai plant for export manufacturing.