Ford returns to Tamil Nadu with Rs 3.2K-crore fresh investment; CM Stalin hails ‘comeback’

Automobile manufacturer Ford on Friday confirmed plans for powertrain manufacturing at its Chennai plant, focused on producing all-new, next-generation engines. The firm will invest Rs 3,250 crore to manufacture engines.

Building on the letter of intent signed in September 2024, representatives from Ford and the government of Tamil Nadu signed a memorandum of understanding outlining the strategic direction that leverages India's manufacturing expertise as part of the Ford+ plan.

With an initial expected investment of Rs 3,250 crores, the project is expected to create more than 600 jobs, as well as indirect jobs across the industry.

Alongside this manufacturing presence, Ford currently employs approximately 12,000 talented individuals in its Global Business Operations in Tamil Nadu.

According to a Ford statement, the plan confirmed today complements Ford's existing engine manufacturing plant in India, which produces and exports engines, thereby ensuring India continues to be vital to the company's operations in the region.

“We are pleased to advance our plans and confirm the Chennai plant's vital role in Ford's manufacturing network,” said Jeff Marentic, president, International Markets Group, Ford Motor Company. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”

The engine lineup planned for production in Chennai will feature all-new technology.

“Ford's decision to commence manufacturing in Chennai will energise the resurgent automotive sector of Tamil Nadu and speaks volumes about the State's robust manufacturing ecosystem, highly skilled workforce, and excellent investor facilitation under the leadership of our CM Thiru MK Stalin,” said TRB Rajaa, Industries Minister, Tamil Nadu.