The Maraimalai Nagar plant near Chennai is expected to start operations in 2029 with an annual capacity of 235,000 engines. In addition to a number of indirect jobs, this would create more than 600 direct jobs. ET was the first to report on March 18 that Ford was looking to manufacture and export engines and related components from Chennai.
An addition to the Sanand factory
Later, on October 11, ET reported that top Ford officials were expected to meet Tamil Nadu government officials to discuss the future of the plant.
Ford representatives met with Tamil Nadu Chief Minister MK Stalin earlier in the day and confirmed engine production plans, building on the company’s letter of intent filed in September 2024.
Ford pulled the plug on its Indian operations in September 2021 due to mounting losses, weak sales and a global restructuring. In 2022, the company sold its car plant in Sanand, Gujarat, to Tata Motors, although it retained an engine manufacturing facility in the area. Ford was also in talks with other automakers to sell the Chennai plant but later decided to shelve the plan. During its three-decade run in India since 1995, the company invested more than $2 billion and launched successful models including the EcoSport SUV and the Figo small car. Ford said the latest production plans complement its existing engine plant in Sanand, which produces and exports engines, keeping India vital to the company’s operations in the region.
“We are pleased to continue our plans and confirm the critical role of the Chennai plant in Ford’s manufacturing network,” said Jeff Marentic, president of Ford’s International Markets Group, in a statement. “We are grateful to the Government of Tamil Nadu for its continued support in advancing these plans. This decision reinforces our commitment to leverage India’s manufacturing capabilities for future products.”
Ford said details on engine type and export markets will be shared closer to the start of production.
Strong presence
Despite shutting down its car manufacturing operations, Ford has maintained a strong presence in India through its Global Business Operations in Tamil Nadu, where it currently employs approximately 12,000 people.
Ford’s investment in India comes at a time when US President Donald Trump is pushing US and foreign companies to move production and jobs back to the country, publicly criticizing those who produce abroad.
“Ford’s decision to commence production in Chennai will further boost Tamil Nadu’s resurgent automotive sector,” said TRB Rajaa, Tamil Nadu Industries Minister.
“This isn’t just the start of production at the existing Ford plant, it’s the state taking another step toward the future of the automotive industry with the production of next-generation engines. We remain committed to supporting Ford’s operations here.”
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