The company will sign a Memorandum of Understanding (MoU) with the Government of Tamil Nadu today to establish a new advanced powertrain engine manufacturing line at its Maraimalai Nagar facility. The agreement will be inked in the presence of Industries Minister TRB Rajaa, following a meeting between Ford executives and Chief Minister M.K. Stalin scheduled for 11 a.m.
New Engine Plant to Boost Jobs and Industrial Growth
As part of the agreement, Ford will manufacture next-generation powertrain engines incorporating advanced technology, strengthening its global powertrain and export network. The project is expected to create over 600 direct jobs in Tamil Nadu and contribute significantly to industrial development in the region.
The proposed plant will have an annual capacity of 2,35,000 engines, with production expected to commence in 2029. Site preparation and groundwork are likely to begin later this year, signaling a strong vote of confidence in Tamil Nadu’s industrial ecosystem.
Ford’s Renewed Commitment to India
This investment follows a letter of intent signed in September 2024 during Chief Minister Stalin’s visit to the United States. The move represents Ford’s renewed engagement with Tamil Nadu, two years after the automaker halted vehicle manufacturing operations in India in 2022.
Ford’s Chennai facility in Maraimalai Nagar, located on the outskirts of the state capital, has remained non-operational since its closure. The revival of this plant underscores Ford’s long-term manufacturing strategy focused on technology-driven exports and global supply chain integration.
Global Context and Policy Impact
The announcement comes amid evolving global trade policies under U.S. President Donald Trump’s administration, which emphasizes the ‘Made in America’ manufacturing agenda. While earlier speculation suggested these policies might deter Ford’s overseas expansion, the company’s India investment demonstrates a balanced global manufacturing approach — maintaining domestic commitments while leveraging India’s skilled workforce and export potential.
A Milestone for Tamil Nadu’s Auto Industry
With this ₹3,250-crore investment, Tamil Nadu further strengthens its position as India’s leading automotive hub, housing global giants like Hyundai, BMW, and Renault-Nissan. The collaboration between Ford and the Tamil Nadu government is expected to attract additional foreign investments and bolster India’s standing in the global auto supply chain.