Ford to Invest Rs 3,250 Crore in Engine Manufacturing
Ford Motor Company has confirmed a fresh investment of ₹3,250 crore (about US $370 million) to re-tool its facility in Maraimalai Nagar, near Chennai in Tamil Nadu. The company has signed a memorandum of understanding with the state government as part of this move.
Production Plans
The revitalised plant is set to manufacture next-generation engines, with a planned annual capacity of 235,000 units, targeting export markets. Production is expected to commence in 2029, with site preparation and re-equipment beginning in the near term.
Strategic Significance
This marks Ford’s return to manufacturing in India after it ceased vehicle production in the country in 2021. The investment is aligned with Ford’s global “Ford+” powertrain strategy and underscores India’s increasing importance in its global manufacturing footprint. The facility is expected to generate over 600 direct jobs, along with many more in the supply chain.
Context and Implications
Ford exited its previous Indian vehicle manufacturing operations citing competitiveness issues, but maintained a presence through its India engine operations and global business services. The new investment signals an optimised approach focused on high-tech components and exports rather than domestic vehicle sales. It may also boost Tamil Nadu’s automotive ecosystem and help the state reinforce its role as a manufacturing hub.
