In a strong signal of renewed commitment to India, Ford Motor Company will invest ₹3,250 crore to manufacture next-generation powertrains at its Maraimalai Nagar facility near Chennai. Production is expected to begin in 2029, with the plant being developed as a key export hub, targeting an annual capacity of 235,000 units.
The investment follows a memorandum of understanding (MoU) signed between Ford executives and the Tamil Nadu government, building on a 2024 letter of intent. The agreement outlines Ford’s strategy to leverage India’s manufacturing capabilities to support its global operations, particularly in Southeast Asian markets. Chief Minister M.K. Stalin met senior Ford leaders to formalise the collaboration.
According to Jeff Marentic, president of Ford’s International Markets Group, the Chennai plant will play a significant role in the company’s global manufacturing network. Ford, which sold its Sanand vehicle plant to Tata Motors in 2022 but continues to operate an engine facility there for exports, aims to further expand its powertrain footprint from India.
Tamil Nadu Industries Minister T.R.B. Rajaa termed the development a major boost to the state’s automotive sector, citing its skilled workforce, industrial infrastructure and proximity to major ports such as Chennai and Ennore.
This announcement marks Ford’s return to manufacturing in Tamil Nadu after ceasing operations at Maraimalai Nagar in August 2022 due to accumulated losses of over $2 billion and a declining market share in India. The new project is expected to generate more than 600 direct jobs and significant employment across the supply chain.
Specific details regarding the types of engines and export destinations will be revealed closer to production. However, the company emphasised that the move reflects its long-term vision to tap into India’s role as a global manufacturing hub.
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