Chennai: American automaker Ford Motor Company has announced its plans to revive its defunct Chennai plant with a fresh investment of ₹3,250 crore investment. Unlike earlier, where it tried (and failed) to make a mark in India’s ultra-competitive automobile segment, Ford is instead looking to repurpose the plant to manufacture next-generation engines and powertrains for exports.
The company will begin production later this year, with a capacity to produce 2.35 lakh engines annually by 2029, according to a statement by the company.
The company had ceased production at its Maraimalai Nagar plant in September 2021 following the company’s decision to halt its India operations.
“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. “This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products.”
The company had submitted a Letter of Intent (LOI) to the government of Tamil Nadu, to confirm its intention of reviving its 350 acre plant for exports, though not to the US.
Ford returns to Tamil Nadu with full throttle!
A powerful comeback that renews a long and trusted partnership, as #Ford invests Rs. 3,250 crore in Tamil Nadu to set up a Next Gen Engine Manufacturing Unit at its plant at Maraimalai Nagar. This major investment will create 600… https://t.co/IiEh6HX46o
— M.K.Stalin – தமிழ்நாட்டை தலைகுனிய விடமாட்டேன் (@mkstalin) October 31, 2025
“A powerful comeback that renews a long and trusted partnership, as #Ford invests ₹ 3,250 crore in Tamil Nadu to set up a Next Gen Engine Manufacturing Unit at its plant at Maraimalai Nagar. This major investment will create 600 direct jobs and build on Tamil Nadu’s robust automobile ancillary ecosystem.
Ford’s decision to choose India’s automobile capital for production of such futuristic engines is another testimony for Tamil Nadu’s industrial prowess and its indispensable position in the global manufacturing supply chain!” Tamil Nadu CM MK Stalin tweeted.
This development comes at a time when the US, under President Donald Trump, is increasingly turning protectionist with his ‘Make In America’ push. Donald Trump has used tariffs to promote local manufacturing, but the dynamic nature of manufacturing, supply chain constraints and economies of scale have forced many companies, including Ford, to carve their own path.
