Alongside its manufacturing operations, Ford employs about 12,000 people in its Global Business Operations in Tamil Nadu.Ford Motor Company on Friday confirmed that its Chennai plant will produce all-new next-generation engines, marking the start of a new phase for the company’s operations in India.
The announcement follows a memorandum of understanding (MoU) signed between Ford and the Government of Tamil Nadu, formalising plans first outlined in a letter of intent in September 2024. The development forms part of Ford’s global Ford+ plan and strengthens India’s position in the company’s manufacturing network.
New investment and production plan
Ford said the Chennai plant will have a planned capacity of 235,000 engines annually, with production expected to begin in 2029. The project involves an estimated investment of ₹3,250 crore and is expected to generate more than 600 direct jobs, along with indirect employment in related sectors.
Jeff Marentic, President, International Markets Group, Ford Motor Company, said the agreement confirms the Chennai facility’s ongoing role in Ford’s regional manufacturing network.
“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 expertise for future products,” he noted.
The new engines will feature updated technology, with further details on specifications and export markets to be shared closer to the production start date.
State government support
TRB Rajaa, Industries Minister, Government of Tamil Nadu, said Ford’s return to manufacturing in Chennai would contribute to the growth of the state’s automotive sector.
“This is not just the start of manufacturing at the existing Ford facility; it marks another step towards the future of the automotive industry with the production of next-generation engines. We remain committed to supporting Ford’s operations here,” Rajaa added.
Continued presence in India
Alongside its manufacturing operations, Ford employs about 12,000 people in its Global Business Operations in Tamil Nadu. The company said it continues to serve customers in India through service centres, aftermarket parts supply and warranty support.
