Ford Motor Company announced that it will resume manufacturing operations at its Chennai plant in India, confirming plans to produce next-generation engines for export markets.

The facility will have an annual production capacity of 235,000 engines, with operations scheduled to begin in 2029. The company has signed a memorandum of understanding with the Tamil Nadu Government, following a letter of intent issued in September 2024.

Ford plans an initial investment of Rs. 3.25 billion (US$ 36.6 million) in the project, which is expected to create more than 600 direct jobs, along with additional indirect employment across the industry.

Site preparation and investment activities are set to commence later this year at the Chennai facility. The plant will produce engines incorporating new technology, although Ford has not disclosed specific details regarding the engine types or target export markets.

"We are advancing our plans and confirming the Chennai plant's role in Ford's manufacturing network," said Jeff Marentic, President of the International Markets Group at Ford Motor Company. He acknowledged the support of the Tamil Nadu Government and noted India's importance within the company's regional operations.

The announcement marks Ford's return to manufacturing in Chennai after the company ceased vehicle production in India in 2021. The new operation will complement Ford's existing engine manufacturing facility in the country, which continues to produce and export engines globally.

Tamil Nadu Industries Minister Dr TRB Rajaa stated that Ford's decision aligns with the state's industrial capabilities and workforce. The minister added that the project indicates continued progress in the region's automotive technology sector.

Ford maintains a presence in Tamil Nadu through its Global Business Operations, employing approximately 12,000 people. The company also provides service support, aftermarket parts, and warranty services to existing customers in India.

The Chennai manufacturing initiative is part of Ford's broader 'Ford+' growth strategy, which aims to strengthen the company's global manufacturing and distribution network. The strategy includes Ford's three business segments: Ford Blue for traditional and hybrid vehicles, Model e for electric vehicles, and Pro for commercial customers.

Ford Motor Company, headquartered in Dearborn, Michigan, employs approximately 170,000 people worldwide. The company operates through multiple brands, including Ford and Lincoln, producing vehicles such as trucks, SUVs, commercial vans, and passenger cars. Ford Motor Credit Company provides financial services to support vehicle purchases.

The announcement regarding the Chennai plant comes at a time when global automakers are reassessing their manufacturing operations to optimise production costs and access expanding markets.

India's automotive sector continues to attract international manufacturers seeking to utilise the country's production infrastructure and strategic export location.

The Tamil Nadu Government has promoted the state as an automotive manufacturing centre, offering infrastructure support and policy incentives to attract investment. The state hosts several major vehicle manufacturers and suppliers, contributing to India's total vehicle production and export volumes.