Ford re-enters Indian market, defying US manufacturing push, to strengthen Chennai’s automotive ecosystem
Ford Motor Company is set to resume manufacturing in India with a fresh investment of ₹3,250 crore ($370 million) at its Chennai facility, marking a major comeback after exiting the Indian market in 2021. The company announced that it has signed a memorandum of understanding with the Tamil Nadu government to advance its Ford+ strategic plan, leveraging India’s manufacturing expertise, reported timesofindia.indiatimes.com.
Work on the project, including site preparation, will begin later this year, with production scheduled for 2029. Once operational, the plant will have an annual capacity of 2.35 lakh engines, featuring all-new technology, with details on engine types and export destinations to be revealed closer to launch.
The Chennai project is expected to generate over 600 direct jobs, introduce advanced engine technology, and reinforce India’s role in Ford’s global manufacturing network
Jeff Marentic, President of Ford’s International Markets Group, said the move underscores the company’s confidence in India’s manufacturing capabilities. Tamil Nadu Industries Minister T R B Rajaa welcomed the announcement, noting that it will inject momentum into the state’s automotive sector.
Ford continues to maintain a strong presence in Tamil Nadu through its Global Business Operations, employing around 12,000 people. The Chennai plant revival follows the company’s 2021 exit, which included the sale of its Sanand facility in Gujarat to Tata Motors and a phased shutdown of Chennai operations. Last year, Ford had submitted a Letter of Intent to repurpose the Chennai plant for export-focused manufacturing, a plan now formalized with this investment.
The company’s return enhances Tamil Nadu’s status as a key industrial hub, already home to global automakers like Hyundai, Renault, and BMW.
