CHENNAI: In a major boost to Tamil Nadu’s industrial landscape, Ford Motor Company on Friday announced that it would restart manufacturing operations at its shuttered Chennai plant to produce a new line of next-generation engines. The decision marks the American automaker’s first major industrial investment in India since its exit from the domestic vehicle market three years ago.
The move was formalised through a memorandum of understanding (MoU) exchanged between Ford and the Tamil Nadu government in the presence of Chief Minister M K Stalin, Deputy Chief Minister Udhayanidhi Stalin and Industries Minister T R B Rajaa at the Secretariat.
As part of the agreement, Ford will invest Rs 3,250 crore to retool and modernise its facility at Maraimalai Nagar, about 45 km south of Chennai, with production slated to begin in 2029. The upgraded plant will have an annual capacity of 2.35 lakh engines and is expected to create over 600 direct jobs, in addition to indirect employment across the supply chain, according to the state government.
The development builds on a letter of intent Ford submitted in September 2024, confirming its plan to utilise the Chennai facility as part of the company’s global Ford+ restructuring strategy aimed at enhancing manufacturing efficiencies and expanding its powertrain portfolio for international markets.
Chennai facility to play a vital role in Ford’s global manufacturing footprint
Chief Minister MK Stalin hailed the announcement as “another testimony to Tamil Nadu’s industrial prowess and its indispensable position in the global manufacturing supply chain.” Taking to social media, he said, “Ford returns to Tamil Nadu with full throttle. A powerful comeback that renews a long and trusted partnership as Ford invests Rs 3,250 crore to set up a next-gen engine manufacturing unit at its Maraimalai Nagar plant.”
He added that the major investment would further strengthen TN’s robust automobile ancillary ecosystem, reinforcing the state’s status as the “automobile capital of India.” Jeff Marentic, president of Ford’s International Markets Group, said the Chennai plant would play a “vital role” in the company’s global manufacturing footprint. “This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products,” he said, expressing gratitude for the Tamil Nadu government’s support.
The engine planned for production in Chennai will feature all-new technology,. Industries Minister TRB Rajaa said Ford’s return underscored the state’s leadership in next-generation automotive technologies. “This is not merely a restart of operations — it positions Tamil Nadu at the forefront of the future of mobility,” he said.
Ford currently operates an engine plant in India that caters primarily to export markets. The latest investment reaffirms India’s importance in Ford’s global supply chain, even after it halted vehicle manufacturing in 2022 as part of its global restructuring.
Apart from its manufacturing presence, Ford continues to employ about 12,000 people at its global business services centre in Chennai, providing engineering, technology, and back-office support.