Ford Chennai plant to manufacture engines for export from 2029

Ford Motor Company has announced that it will revive its Chennai plant in India to manufacture all-new, next-generation engines for overseas markets from 2029. The American carmaker has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for the same, a year after submitting a Letter of Intent (LOI) in September 2024.

1. Ford Chennai plant expected to see initial investment of Rs 3,250 crore
2. It will have annual production capacity of 2,35,000 engines 

Ford India engine manufacturing details

Ford has not shared exact details of what kind of powertrains will be manufactured here, but says it will feature “next-generation technologies”. The company will begin site preparation later this year, but production is still some time away, expected by 2029. The plant will have a planned capacity of 235,000 engines annually.   

Ford’s Maraimalai Nagar plant in Chennai has been lying dormant since the company pulled the plug on its India operations in September 2021. This announcement finally clears the cloud on future operations of the Chennai plant, as despite the LOI to the Tamil Nadu Government, there have been reports about Ford rethinking its manufacturing plans in India.

This announcement is expected to see the American carmaker initially invest Rs 3,250 crore under the Ford+ plan, where it plans to keep capitalizing on India’s manufacturing prowess. This is also expected to create about 600 new jobs, says Ford.

“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, president, International Markets Group, Ford Motor Company. “This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”

Meanwhile, Ford also continues to manufacture engines for export in limited capacity from its Sanand facility on lease from Tata Motors, one of the company's two India plants that it sold to Tata Motors in 2023.