Ford Announces Rs 3,250 Crore Investment Into Chennai Plant; To Produce Next-Gen Engines For Export From 2029

The Ford Motor Company has announced an investment of up to Rs 3,250 crore into its plant in Chennai, Tamil Nadu, intending to export next-gen engines to foreign markets. The American carmaker has signed a Memorandum of Understanding with the Tamil Nadu government for the same. The investment comes following a Letter of Intent submitted by the carmaker to the state government in September.

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Ford says that the fresh investment will go into its existing engine manufacturing facility in Chennai with the aim of producing next-generation engines starting from 2029 for global markets. Details on the powertrains will be revealed closer to the restart of the facility, the carmaker has said. The company said that the upgraded facility will have a planned production capacity of 2.35 lakh units per annum and help create over 600 new jobs.

Ford had signed a Letter of Intent with the Tamil Nadu government to restart production at its Chennai plant in September 2025.

“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. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”

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Ford had previously announced an end to its domestic production and sales operations back in late 2021, with manufacturing and sales operations winding down in the country in 2022. The carmaker went on to sell its Sanand production facility to Tata Passenger Electric Mobility Ltd in 2023, though the company’s second plant in Chennai remained in the American carmaker’s possession.

The carmaker had previously revealed plans to restart vehicle sales in India via the CBU route, bringing in some iconic names from its global portfolio, though nothing materialised from the same.