'Ford returns with full throttle": MK Stalin reacts to Ford’s Rs 3,250-crore bet on Tamil Nadu 

American automaker Ford Motor Company has announced plans to resume manufacturing operations at its Chennai facility in Tamil Nadu, marking a major return to production in India after a four-year pause. The company has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to establish a new next-generation engine manufacturing line at its Maraimalai Nagar plant.

Welcoming the move, Chief Minister M.K. Stalin said Ford’s return represents a “powerful comeback” that renews a long-standing partnership. With an investment of Rs 3,250 crore, the project will create 600 direct jobs and further strengthen Tamil Nadu’s robust automobile ecosystem.

Ford’s decision to produce advanced powertrains in India’s automobile capital underscores Tamil Nadu’s industrial strength and global manufacturing significance. Welcome back, Ford!

Ford Motor Company on Friday confirmed that its Chennai plant will play a key role in manufacturing next-generation engines, marking a significant return to manufacturing activity in India. The announcement follows a memorandum of understanding (MoU) signed between Ford and the Government of Tamil Nadu, outlining the strategic roadmap for the project.

This development builds on the letter of intent signed in September 2024, reaffirming Ford’s commitment to leverage India’s strong industrial ecosystem as part of its global Ford+ transformation plan. The new initiative complements Ford’s existing engine plant in India, which continues to produce and export powertrains to international markets.

“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 upcoming engine lineup, to be produced at the Chennai facility, will feature all-new, advanced technology powertrains designed to meet future global performance and efficiency standards. Ford has yet to disclose specific engine types or export destinations, but indicated that more details will be announced closer to the start of production.

According to the MoU, the Chennai facility will undergo significant upgrades and site preparation beginning later this year. Ford plans an initial investment of Rs 3,250 crore to operationalise the project, which is expected to create over 600 direct jobs and additional indirect employment opportunities across ancillary industries. Once operational, the plant will have an annual production capacity of 235,000 engines, with commercial production slated for 2029.

“Ford’s decision to commence manufacturing in Chennai will further energize 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 Hon'ble Chief Minister, Thiru M. K. Stalin,” said Dr. T.R.B. Rajaa, Industries Minister, Government of Tamil Nadu. “This is not just the restart of operations at the Ford facility—it is a new chapter for Tamil Nadu as we move towards the future of mobility through the production of next-gen engines.”

Tamil Nadu, one of India’s leading automotive hubs, has been actively working to attract global automakers and component manufacturers. The Ford announcement reinforces the state’s position as a key player in India’s automotive and export ecosystem, which contributes significantly to the national economy.

The Chennai plant, which had ceased vehicle production in 2021 after Ford’s restructuring of its India operations, will now find a renewed purpose as a global engine manufacturing base. The move highlights Ford’s long-term commitment to maintaining a strong operational footprint in India, even after winding down domestic vehicle sales.

Currently, Ford employs approximately 12,000 professionals in its Global Business Operations (GBO) in Tamil Nadu, supporting engineering, IT, and financial services functions across the company’s international network.

While production is still a few years away, the company’s return to manufacturing in India is being seen as a positive signal for the state’s industrial revival and an endorsement of India’s manufacturing capabilities.

Ford also reaffirmed that it remains fully committed to serving existing customers in India, providing continued service, warranty, and parts support through its nationwide network.