Ford Re-Envisions Future in India. Confirms Rs 3,250 Crores for Chennai Plant
Ford has officially confirmed the future of its Chennai-based manufacturing plant, announcing that it will produce all the next-generation engines. Here are the highlights.
- The Chennai plant will be focused on producing next-gen engines built on all-new technology platforms.
- Ford has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government.
- The project will involve an estimated investment of Rs 3,250 crores.
Ford has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to formalise the strategic direction of the facility. The announcement is followed by the letter of intent signed in September 2024. As per Jeff Marentic, President, International Markets Group, Ford Motor Company, "We are pleased to advance our plans and confirm the Chennai plant's vital role in Ford's manufacturing network". He also expressed his gratitude towards the Government of Tamil Nadu for its partnership and highlighted that the move strengthens Ford's regional manufacturing capabilities.
Tamil Nadu Industries Minister Dr T.R.B. Rajaa welcomed this announcement, stating, "Ford's decision to commence manufacturing in Chennai will further energize the resurgent automotive sector of Tamil Nadu, and this 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. He added that the initiative represents the state taking "another step towards the future of the automotive industry with the production of next-gen engines".
Following site preparation and capital investment, beginning later this year, the plant will generate more than 600 jobs and numerous indirect opportunities across the supply chain, with an expected investment of Rs 3,250 crores and an expected manufacturing capacity of 235,000 engines per year. Ford currently employs around 12,000 individuals in its Global Business operations in Tamil Nadu. In parallel, Ford continues to provide support to its existing Indian customers through services, aftermarket parts, and warranty support. Ford is yet to share the specific details on engine type and export markets, and will do so as they get closer to the start of production.