October 31, 2025
The automaker will invest ₹3,250 crore to establish a powertrain manufacturing project focused on next-generation engines
Operations will commence later this year, with a planned capacity of 235,000 engines annually and production beginning in 2029
A memorandum of understanding (MoU) has been signed with the Tamil Nadu government, following a Letter of Intent (LOI) submitted in 2024
State Industries Minister T.R.B. Rajaa said Ford’s return reinforces Tamil Nadu’s position as a global automotive hub
Ford Motor Company announced plans to restart manufacturing operations at its Maraimalai Nagar plant in Chennai, marking a major comeback for the American automaker in India after halting operations in 2021.
The company said it will invest ₹3,250 crore to build an all-new powertrain manufacturing project, focused on producing next-generation engines under the automaker’s Ford+ strategic plan. The project is expected to generate over 600 new jobs in the state.
Ford had initially indicated interest in resuming operations during Chief Minister M.K. Stalin’s visit to the United States in September 2024, when it submitted a Letter of Intent (LOI) to the Tamil Nadu government. Building on that, both parties have now signed a memorandum of understanding (MoU) “outlining the strategic direction that leverages India’s manufacturing expertise as part of the Ford+ plan,” the company said in a statement.
According to the announcement, work on the project will begin later this year. Once completed, the Chennai plant will have a planned annual capacity of 235,000 engines, with production expected to begin in 2029.
“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, President of Ford Motor Company’s International Markets Group. He thanked the Tamil Nadu government for its support and said the decision “reinforces Ford’s commitment to leveraging India’s manufacturing prowess for future products.”
Tamil Nadu Minister for Industries T.R.B. Rajaa welcomed Ford’s decision, calling it a boost to the state’s resurgent automotive sector. “This move speaks volumes about Tamil Nadu’s robust manufacturing ecosystem, skilled workforce, and excellent investor facilitation under the leadership of our Chief Minister M.K. Stalin,” he said.
“This is not just the restart of manufacturing at the existing Ford facility — it marks another step toward the future of the automotive industry with the production of next-generation engines,” Rajaa added. “We remain committed to supporting Ford’s operations in the state.”
The revival of Ford’s Chennai plant comes as Tamil Nadu continues to strengthen its position as India’s leading automotive manufacturing hub, home to major global automakers and a growing electric and green mobility ecosystem.
Source: The Hindu