Ford to restart Chennai plant by 2029 for next-gen export engines
Ford Motor Company has confirmed plans to revive its Chennai manufacturing facility in India, which will begin producing next-generation engines for export starting 2029. The announcement follows the signing of a Memorandum of Understanding (MoU) with the Government of Tamil Nadu, marking a significant step in Ford’s renewed engagement with India’s automotive manufacturing ecosystem.
Engine Manufacturing to Begin by 2029
According to Ford, the Chennai plant will focus on all-new, next-generation powertrains designed primarily for overseas markets. While specific details about the engines have not been disclosed, the company stated that they will incorporate advanced and future-ready technologies.
The project will involve an initial investment of Rs. 3250 crore, with a planned annual production capacity of 2,35,000 engines. Site preparation is expected to commence later this year, while full-scale production will begin by 2029.
A New Chapter for the Chennai Facility
Ford’s Maraimalai Nagar plant in Chennai has remained idle since the company ceased its India operations in September 2021. The latest announcement puts an end to speculation surrounding the plant’s future, following a Letter of Intent (LOI) Ford had submitted to the Tamil Nadu government in September 2024.
The move is part of the company’s Ford+ global strategy, under which Ford aims to utilise India’s strong manufacturing capabilities to support its international supply chain. The project is also expected to create around 600 new jobs, according to Ford.
Jeff Marentic, President of Ford’s International Markets Group, said, “This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products and strengthens the Chennai plant’s role in our global network.”
Ford’s Continued Presence in India
Despite halting car sales in India, Ford continues to have a limited engine export operation at its Sanand facility in Gujarat, which it leases from Tata Motors. The new investment in Chennai reaffirms Ford’s long-term interest in maintaining a manufacturing footprint in the country.
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