Ford Motor Company will invest ₹3,250 crore (about $370 million) in India to revive its Maraimalai Nagar plant near Chennai, marking a major step toward strengthening India’s role in its global manufacturing network.
The move comes despite policy pressures from the Trump administration urging U.S. firms to prioritize domestic production.
The investment, formalized through a memorandum of understanding (MoU) with the Tamil Nadu government, will focus on retooling the idle facility to produce next-generation engines primarily for export markets.
Reports indicate that these engines will not be supplied to the United States but to other global destinations as part of Ford’s broader cost-optimization and export strategy.
Ford had halted vehicle manufacturing in India in 2021 following sustained financial losses and a weak market presence. The company’s latest commitment signals a renewed, export-led engagement with India, focusing on advanced manufacturing rather than domestic car sales.
Jeff Marentic, president of Ford’s International Markets Group, said the Chennai plant would play a “vital role” in the company’s future production plans. “This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products,” he said, acknowledging the Tamil Nadu government’s support.
Tamil Nadu Industries Minister T.R.B. Rajaa said the investment reaffirmed the state’s leadership in the automotive sector. “This is not just a restart of production at the Ford facility; it positions Tamil Nadu for the next phase of the automotive industry with next-gen engines,” he noted.
While Ford did not disclose technical details or target markets for the new engines, company officials confirmed that production would support Ford’s global supply chain. The project highlights India’s growing importance as a cost-efficient, strategically located export hub for auto components and engines.
If implemented successfully, Ford’s investment could boost India’s reputation as a global manufacturing base, reinforcing the country’s position amid shifting trade dynamics and renewed competition among international automakers.
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