Ford to Invest ₹3,250 Crore in Chennai Plant for Next-Generation Engine Production

New Delhi, October 31, 2025: In a major revival move, Ford Motor Company today announced an investment of ₹3,250 crore in its Chennai manufacturing facility – to produce next-generation engines under its global Ford+ strategy. The investment marks the American automaker’s re-entry into India’s manufacturing landscape – and signals renewed confidence in the country’s automotive capabilities and export potential.

Ford Signs MoU with Tamil Nadu Government

Ford signed an MoU with the Tamil Nadu government to revive its Indian operations. The company said this investment was in line with its global vision to integrate India into its international production and supply chain network. The move is also expected to give a significant boost to the reputation of Tamil Nadu as a leading hub for automotive manufacturing in Asia.

Production Timeline and Job Creation

The new project at the Chennai plant is expected to start production in 2029 after the preparatory work and capital investments start later this year. The factory will have a capacity of 2.35 lakh engines per year and will manufacture Ford’s next-generation high-efficiency engines. The project would directly create over 600 jobs and several indirect employment opportunities across the regional supply chain, further reinforcing the industrial growth in the area.

“We’re pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, President of Ford’s International Markets Group. “This decision reinforces our commitment to leverage India’s manufacturing prowess for future products.”

Rejuvenating Tamil Nadu’s Automotive Ecosystem

Welcoming Ford’s decision, Tamil Nadu Industries Minister T. R. B. Rajaa said the resumption of the company’s manufacturing operations would further boost the state’s strong automotive ecosystem, which already hosts several global OEMs and component manufacturers.

Ford’s Continued Footprint in India

Although Ford stopped local vehicle production in 2021 owing to market challenges, it still employs around 12,000 professionals in its Global Business Operations based in Tamil Nadu. The company sold its Sanand facility in Gujarat to Tata Motors but kept the Chennai plant for future export-oriented projects. Ford added that detailed specifications of the new engine lineup and export markets will be shared closer to production start. This investment underpins Ford’s long-term vision for India as a leading player in its global supply chain, while reinforcing India’s role in advanced manufacturing and job creation.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations