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Home » Ford announces plan to revive Chennai plant with ₹3,250-crore investment

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Ford announces plan to revive Chennai plant with ₹3,250-crore investment

Times Desk
Last updated: October 31, 2025 6:41 am
Times Desk
Published: October 31, 2025
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A view of the manufacturing plant of Ford India at Maraimalai Nagar. File

A view of the manufacturing plant of Ford India at Maraimalai Nagar. File
| Photo Credit: B. Velankanni Raj

Automobile manufacturer Ford, on Friday (October 31, 2025), confirmed plans to revive manufacturing operations at its Chennai plant, with a focus on producing all-new, next-generation engines.

With an initial investment of ₹3,250 crore, the project, involving powertrain manufacturing, is expected to create more than 600 jobs, the company said in a release.

Ford, which halted operations at its Maraimalai Nagar manufacturing facility in Chennai in 2021, expressed interest to restart production in Tamil Nadu in September 2024, during Chief Minister M.K. Stalin’s visit to the United States, by submitting a Letter of Intent (LOI) to the State government.

The release stated that building on the LOI, representatives from Ford and the Tamil Nadu government signed a memorandum of understanding (MoU), “outlining the strategic direction that leverages India’s manufacturing expertise as part of the Ford+ plan.”

The project will begin later this year, after which the Chennai plant will have a planned capacity of 235,000 engines annually, with production expected 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, 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.”

Tamil Nadu Minister for Industries T.R.B. Rajaa said Ford’s decision to commence manufacturing in Chennai will further energise the resurgent automotive sector of Tamil Nadu. “[It] speaks volumes about the State’s robust manufacturing ecosystem, highly skilled workforce, and excellent investor facilitation under the leadership of our Chief Minister M.K. Stalin,” he said.

“This is not just the start of manufacturing at the existing Ford facility, it is the State taking yet another step towards the future of the automotive industry with the production of next-gen engines. We remain committed to supporting Ford’s operations here,” he added.

Published – October 31, 2025 12:11 pm IST



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TAGGED:ford chennaiford factory in chennaiford in indiaford re-enters tamil nadu
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