Ford Motor Company has formally confirmed that it will restart manufacturing operations at its Chennai plant, this time focused on producing all-new, next-generation engines for global markets. The announcement follows the signing of a memorandum of understanding between Ford and the Government of Tamil Nadu, building on the letter of intent signed in September 2024.
The agreement aligns with the Ford+ strategy and leverages India’s proven engineering and manufacturing expertise. This expansion complements Ford’s existing engine plant in India, which currently produces and exports powertrains, ensuring the country remains an integral part of Ford’s international operations.
Mr. Jeff Marentic, President, International Markets Group, Ford Motor Company, said, “We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network. This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products.”
Tamil Nadu’s Industries Minister, Dr. TRB Rajaa, welcomed the move, stating: “Ford’s decision to commence manufacturing in Chennai further energizes Tamil Nadu’s automotive sector. This is not just a resumption — it marks the State’s next step into the future of automotive technology with next-gen engines.”
The next-generation engines will feature new technology, with specifics on variants and export destinations to be announced closer to production. The project involves an initial investment of INR 3,250 crore and will create more than 600 direct jobs, in addition to indirect employment across the supply chain.
Site preparation and investments will begin later this year. Once operational in 2029, the plant will have the capacity to produce up to 235,000 engines annually.
Alongside its manufacturing presence, Ford continues to employ approximately 12,000 professionals in Tamil Nadu through its Global Business Operations and will continue providing service, parts, and warranty support to existing customers across India.
