American automaker confirms INR 3,250 crore investment to produce 235,000 engines annually starting 2029, creating over 600 direct jobs in Tamil Nadu
31 Oct 2025 | 2732 Views | By Angitha Suresh
Ford Motor Company announced today that it will resume manufacturing operations at its Chennai plant, confirming plans to produce next-generation engines for export markets. The facility will have an annual production capacity of 235,000 engines, with operations expected to begin in 2029.
The company signed a memorandum of understanding ...
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Ford Motor Company announced today that it will resume manufacturing operations at its Chennai plant, confirming plans to produce next-generation engines for export markets. The facility will have an annual production capacity of 235,000 engines, with operations expected to begin in 2029.
The company signed a memorandum of understanding with the Tamil Nadu government, building on a letter of intent from September 2024. Ford plans an initial investment of INR 3,250 crores in the project, which will create more than 600 direct jobs and additional indirect employment across the industry.
Site preparation and investment activities will commence later this year at the Chennai facility. The plant will manufacture engines featuring new technology, though Ford has not disclosed specific details about engine types or target export markets.
"We are pleased to advance our plans and confirm the Chennai plant's vital role in Ford's manufacturing network," said Jeff Marentic, president of International Markets Group at Ford Motor Company. The executive acknowledged the Tamil Nadu government's support and emphasized India's importance in the company's regional operations.
The development marks Ford's return to manufacturing in Chennai after the company ceased vehicle production in India in 2021. The new operation will complement Ford's existing engine manufacturing facility in India, which continues to produce and export engines globally.
Tamil Nadu Industries Minister Dr. TRB Rajaa welcomed the announcement, stating that Ford's decision reflects the state's strong manufacturing ecosystem and skilled workforce. The minister noted that the project represents progress toward advanced automotive technology production in the region.
Ford currently maintains a significant presence in Tamil Nadu through its Global Business Operations, employing approximately 12,000 people. The company continues to provide service support, aftermarket parts, and warranty services to existing customers in India.
The Chennai manufacturing plan aligns with Ford's broader Ford+ growth strategy, which aims to strengthen the company's global manufacturing and distribution network. The strategy encompasses Ford's three business segments: Ford Blue for traditional and hybrid vehicles, Ford Model e for electric vehicles, and Ford Pro for commercial customers.
Ford Motor Company, headquartered in Dearborn, Michigan, employs about 170,000 people worldwide. The company operates through multiple brands including Ford and Lincoln, offering vehicles ranging from trucks and SUVs to commercial vans and luxury cars. Ford Motor Credit Company provides financial services to support vehicle purchases.
The Chennai plant announcement comes as global automakers reassess their manufacturing footprints to optimize production costs and access growing markets. India's automotive sector has attracted renewed interest from international manufacturers seeking to leverage the country's manufacturing capabilities and strategic location for export operations.
The Tamil Nadu government has actively promoted the state as an automotive manufacturing hub, offering infrastructure support and policy incentives to attract investment. The state hosts several major automotive manufacturers and suppliers, contributing significantly to India's vehicle production and export volumes.