Ford’s investment is specifically earmarked for setting up a new line to produce all-new, next-generation engines designed to power its global vehicle portfolio. This move leverages India’s established manufacturing expertise to serve international markets, aligning with Ford’s “Ford+” transformation plan.
Investment: ₹3,250 crore (approx. $370 million).
Focus: Manufacturing of advanced, next-generation powertrains.
Capacity: The plant is expected to have a planned annual capacity of 235,000 engines.
Production Start: Commercial production is slated to commence in 2029, following a lengthy retooling and site preparation process that will begin later this year.
The announcement follows the signing of a Memorandum of Understanding (MoU) between Ford and the Government of Tamil Nadu, solidifying the automaker’s renewed commitment to the state’s industrial ecosystem.
Tamil Nadu Industries Minister T.R.B. Rajaa hailed the decision as a “powerful comeback” that will further energize the state’s automotive sector. The project is expected to create more than 600 direct jobs, along with numerous indirect employment opportunities across the supply chain.
“This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products,” said a senior Ford executive, underscoring the strategic role of the Chennai plant in the company’s global production network.
This investment is a strong vote of confidence in India as a critical manufacturing base for global automotive components, particularly for future-ready powertrain technologies. The commencement of production in 2029 will solidify the Chennai facility’s vital role in Ford’s international operations, making India a key supplier of advanced engines to the world.