Chennai, November 1, 2025
Reference to Indian Express.The American automaker has promised an investment of 3250 crore to initiate the manufacturing plant of its Chennai facility in a strategic move which will be the first move by the company since 2009 when it was shut down. But this revival does not mean that the cars of Ford will be back to the Indian show rooms once again- at least not now.
Target Advanced Powertrain Manufacturing.
The revived plant will be a next generation powertrain center, and it will solely manufacture innovative engines in the international markets of Ford. The plant is likely to produce 235,000 engines every year once it becomes operational in 2029.
The project will provide more than 600 direct employment opportunities and hundreds of indirect ones in the form of suppliers and logistics partners, which will provide a significant impetus to the auto-industrial complex of Tamil Nadu, according to the officials of the company.
Tactical Change, Not a Luxury Sports Road Car Revival.
Although this step is among the most significant new investments of a traditional American car manufacturer in India after the pandemic, Ford made it clear that at this point, it has no intentions to re-enter the domestic passenger car market. The output of Chennai plant will be more geared towards the export programs as per the global power train roadmap of the company.
In 2021, Ford closed its vehicle manufacturing operations at its India based Maraimalai Nagar plant after 25 years claiming that the company lost heavily and restructuring globally. In spite of that departure, that company had a robust technology and back-office presence in the state, with almost 12,000 professionals working in its division Global Business Services.
Ford is back stronger through government cooperation.
Announced by the company, it is the formalization of its manufacturing comeback, after the signing of a Letter of Intent (LoI) by both companies during the visit of Chief Minister M.K. Stalin to the U.S. in September 2024. This was established subsequently by a Memorandum of Understanding (MoU) with government of Tamil Nadu.
According to Ford, our MoU, that is built upon the 2024 LoI, is a strategy that will offer the Indian manufacturing industry expertise focused on the world as a component of the Ford+ plan.
Jeff Marentic, the President of Ford International Markets Group, said, it is satisfying to restate that Chennai has been part of our world wide network and very thankful that Tamil Nadu remains a strong ally. The choice is an expression of our desire to utilize the manufacturing capability of India in the development of future-proofed products.
Technology and Industrial Effect Engineering.
Although the company has not announced any information on the new engine line-up, Ford affirmed that it would come with all new technology and be able to meet the international demand.
Maraimalai Nagar preparation will start later this year and the production is scheduled in 2029. The prolonged schedule can be attributed to the fact that an extensive manufacturing process is complex to establish a high-tech powertrain line requiring sophisticated re-tools and links with the Ford systems of production around the world.
Welcomes Better Confidence of Ford in Tamil Nadu.
The development was celebrated by the Tamil Nadu Industries Minister T.R.B. Rajaa as a mark of the successful industrial climate in the state. His re-entry will also boost the revived automotive industry of Tamil Nadu he said, highlighting the state with its skilled labor force, infrastructure and conducive investor policies.
Rajaa once again pledged to stay with Ford in a flawless rollout plan terming it as a vote of confidence to the manufacturing power of Tamil Nadu.
It is a Symbolic Homecoming to World Automakers.
The move by Ford also has a symbolic value that it is returning to India a leading multinational company that left there in 2021, at the time when many international companies withdrew because of severe rivalry with Asian manufacturers.
Through this investment, Ford does not position India as a consumer market of its vehicles, but as a strategic production hub that is driving its operations throughout the world.
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