The decision signals renewed confidence in India as a manufacturing hub under CEO Jim Farley, even as Ford pivots away from its earlier electric vehicle focus.Ford Motor Co. plans to invest about ₹32.5 billion ($370 million) in India to manufacture high-end engines for export markets, marking a significant return to local production four years after shutting down operations in the country, according to a person familiar with the matter told Bloomberg.
The investment will be channelled into reviving the automaker’s Maraimalai Nagar facility near Chennai in Tamil Nadu, which will be retooled to produce over 200,000 engines annually. While these engines are not expected to be shipped to the US, details on destination markets remain unclear. The official announcement could come as early as this week, the person said.
Rising trade tensions
The decision signals renewed confidence in India as a manufacturing hub under Chief Executive Officer Jim Farley, even as Ford pivots away from its earlier electric vehicle focus. It also comes at a time of heightened trade tensions between New Delhi and Washington, following the US decision under President Donald Trump to impose a 50 per cent tariff on Indian imports earlier this year.
Ford, which declined to comment, had first set up production in India in 1995 and later expanded with a second plant in Sanand, Gujarat, in 2015. However, it exited the Indian market in 2021 after accumulating losses exceeding $2 billion and sold the Sanand vehicle plant to Tata Motors, which now produces electric vehicles there.
International OEMs scouting for a location in India
The company’s move mirrors a broader trend of American firms deepening their manufacturing footprint in India despite strained bilateral trade ties. Apple, for instance, has ramped up iPhone production across five Indian plants this year.
Tamil Nadu, a key automotive hub, houses facilities of Hyundai Motor Co., Renault SA, and BMW AG, among others. Ford’s renewed investment is expected to strengthen the state’s industrial base and bolster India’s position as a competitive global manufacturing destination.
