American automaker Ford Motor Company Ltd. has confirmed that its Chennai facility will manufacture next-generation engines as part of the company’s global powertrain strategy.
The announcement follows a memorandum of understanding (MoU) signed between Ford and the Government of Tamil Nadu, building on the letter of intent signed in September 2024. The agreement outlines Ford’s plan to leverage India’s manufacturing expertise through its Ford+ strategy.
The Chennai unit will add to Ford’s existing engine plant in India, which already produces and exports engines.
Commenting on this, Jeff Marentic, president of Ford’s International Markets Group, said, “We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network. We are thankful to the government of Tamil Nadu for its continued support as we advance these plans.”
The new engines will feature all-new technology, with specific details about variants and export markets to be shared closer to the start of production.
Tamil Nadu Industries Minister T. R. B. Rajaa said the project would strengthen the state’s automotive sector. “Ford’s decision to commence manufacturing in Chennai will further energise Tamil Nadu’s resurgent automotive industry and reflects the state’s strong manufacturing ecosystem, skilled workforce, and investor-friendly policies,” he said.
The Chennai facility will have a planned annual capacity of 235,000 engines, with production expected to begin in 2029. The initial investment is estimated at Rs 3250 crore, creating more than 600 direct jobs and additional indirect employment across the supply chain.
This American automaker currently employs about 12,000 people in its global business operations in Tamil Nadu. The company continues to provide service, aftermarket parts and warranty support for existing customers in India. said in the release.
