Ford Returns To India With Rs. 3,250 Crore Investment In Chennai Factory
- The Chennai plant will undergo major retooling this year itself to accommodate the new manufacturing setup.
- This revival comes under the Ford plus global plan, with an initial investment of Rs 3,250 crore, and will reportedly create around 600 new jobs in Tamil Nadu.
Ford Motor Company is returning to India in 2025. After halting its manufacturing operations and exiting in 2021.
Ford India has signed an MoU in the presence of Honourable Chief Minister of Tamil Nadu, MK Stalin and our Honourable Deputy Chief Minister, Udhay Stalin.”
Ford will invest Rs. 3,250 crore and create over 600 new direct jobs as it restarts its Chennai facility with production of next-generation, all-new engines with advanced technology.
According to Industries Minister T. R. B. Rajaa, ‘Ford’s decision to commence manufacturing in Chennai will further energise the resurgent automotive sector of Tamil Nadu and it speaks volumes about the state’s robust manufacturing ecosystem’. The revived facility, which ceased vehicle production in 2022, is slated to begin engine production in 2029.
The project is expected to create over 600 jobs and will have a planned annual capacity of 235,000 engines, marking a significant return for Ford to India’s manufacturing landscape, this time focusing on exports.
Site preparation at Maraimalai Nagar will begin later this year. Production will resume in 2029 – a long gestation period, reflecting the complex retooling involved in modern powertrain lines.
Ford’s latest move signals a bold comeback and renewed faith in India’s manufacturing muscle. CEO Jim Farley, who once called it quits on the Indian market, now seems ready to turn the page.
The company, which first set up shop near Chennai in 1995 and later expanded to Sanand, Gujarat, had pulled out in 2021 after racking up losses of over $2 billion.
However, the latest move does not signal an immediate return of Ford cars to Indian showrooms. The company has not announced plans to re-enter the domestic passenger vehicle market, and executives have indicated that the Chennai facility’s output will be geared predominantly toward export programs aligned with Ford’s global powertrain roadmap.
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