Ford coming back to India? To invest Rs 3,250 Cr: Details

In a major development signaling Ford’s renewed interest in India, the American carmaker has announced plans to restart manufacturing operations at its Chennai facility, with a fresh investment of Rs 3,250 crore. The company has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to begin production of next-generation powertrains at the plant.

The announcement builds on the Letter of Intent (LoI) Ford submitted in 2024, reaffirming its commitment to utilize the Chennai facility for global engine production. The upcoming powertrain lineup will feature all-new technology, though specific details about the engines and their export destinations will be revealed closer to the start of production.

Once operational, the Chennai plant will have an annual capacity of around 2.35 lakh engines, with production expected to commence in 2029. The project is expected to create over 600 direct jobs and several indirect employment opportunities across the supply chain.


This development comes nearly four years after Ford’s exit from vehicle manufacturing in India. In September 2021, the company had announced that it would stop producing vehicles locally and would focus only on imported models as part of a global restructuring plan.

While the company has not indicated any plans to re-enter the Indian passenger vehicle market, the current plan focuses on manufacturing powertrains at the Chennai facility for exports. On the other hand, the brand said that it will continue to provide service, spare parts, and warranty support for existing vehicles in the country.

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