The Ford Motor Company on Friday confirmed that it will commence powertrain manufacturing operations at its Maraimalai Nagar plant near Chennai with an initial investment of Rs 3,250 crore, marking a significant step in its renewed engagement with India.
The plant will focus on producing next-generation engines and will have a planned annual capacity of 235,000 units. Production is expected to begin in 2029. The project is expected to create over 600 direct jobs in Tamil Nadu, in addition to a larger number of indirect employment opportunities across the supplier ecosystem.
“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, in an official release. The new manufacturing programme at Chennai will complement Ford’s existing engine plant in Sanand in Gujarat, which already produces and exports engines to international markets.
According to the company, the engine lineup to be built at the Chennai facility will feature all-new technologies, with specific details about engine types and export destinations to be shared closer to the start of production.
The announcement comes amid months of speculation that the US automaker was reassessing its strategy for the Maraimalai Nagar plant following policy shift in the United States, including tariff actions and initiatives under President Donald Trump to bring more manufacturing back to American soil.
“This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products,” Marentic said, reaffirming Ford’s global supply chain strategy.
Ford’s decision follows the submission of a Letter of Intent (LoI) to the Tamil Nadu government in September 2024, confirming its plan to repurpose the Chennai plant for export-oriented production. The company had described the initiative as part of its broader Ford+ growth strategy, which aims to strengthen global manufacturing and optimise cost efficiencies.
Welcoming Ford’s announcement, Tamil Nadu Industries Minister TRB Rajaa said, “Ford’s decision to commence manufacturing in Chennai will further energise the resurgent automotive sector of Tamil Nadu and speaks volumes about the state’s robust manufacturing ecosystem, highly skilled workforce, and excellent investor facilitation.”
The minister had earlier told FE that there had been some delay in reopening the plant due to changes in the US administration but that the process is now back on track. He had indicated that manufacturing operations could resume as early as the second half of 2025.
Sources also told FE that Ford has been preparing for the resumption of manufacturing by making key management appointments. Auto industry veteran Anand Misra, currently plant manager at Ford’s Sanand facility, and finance controller Satish Varma — who has extensive experience in marketing, sales, and restructuring strategy — have been inducted into key board-level roles to steer the new phase of operations.
Ford had exited vehicle manufacturing in India in September 2021 as part of a global restructuring effort, which led to the shutdown of the 350-acre Maraimalai Nagar plant. At its peak, the facility had an annual capacity of 150,000 cars and 340,000 engines. While Ford ceased car production in India, it continued to export engines from its Sanand plant in Gujarat, which it sold to Tata Motors in 2023 but later leased back to maintain limited production activities.
Alongside its manufacturing footprint, Ford continues to have a strong presence in Tamil Nadu through its Global Business Operations, employing around 12,000 professionals across various engineering, technology, and business support functions.