Ford Motor Company has announced plans to restart manufacturing operations at its facility in Chennai, Tamil Nadu, with a new project focused on producing next-generation engines for global markets. The new plant, which will have an installed capacity of 235,000 engines per year, is scheduled to commence production in 2029.
The initiative follows the signing of a memorandum of understanding with the Tamil Nadu government. The company will invest INR 32.5 billion in the project, generating more than 600 direct jobs and additional indirect employment across related sectors. Construction and site preparation work at the Maraimalai Nagar facility in Chengalpattu District are expected to begin later in 2025.
Jeff Marentic, president of Ford’s International Markets Group, said the Chennai site would become an integral part of the company’s global manufacturing network. “This development confirms the vital role that Chennai will play in Ford’s future operations,” he stated, adding that India remains a strategic location for the company’s international business.
The announcement marks Ford’s manufacturing return to Chennai, where it had ended vehicle production in 2021. The company’s new engine programme will complement its existing Indian operations, which continue to produce and export engines to overseas markets. Specific details regarding the engine configurations and target export destinations have not been disclosed.
On 31 October 2025, a memorandum of understanding was formally signed between the Government of Tamil Nadu and Ford Motor Company in the presence of Chief Minister M.K. Stalin. Representing Ford at the signing were Martin Everitt, Global Director – Powertrain Manufacturing Engineering; Matthew Godlewski, Vice President – International Government Affairs; Simonetta Verdi, Managing Director – Government Affairs, International Markets Group; and Shripad Bhat, Country Director – Government Affairs, Ford India Private Limited.
Tamil Nadu Industries Minister Dr. TRB Rajaa said the project underlines the state’s strong industrial capabilities. “Ford’s decision to commence manufacturing in Chennai will further energise Tamil Nadu’s automotive sector and reflects the state’s skilled workforce and investor-friendly environment,” he said. Chief Minister M.K. Stalin also welcomed the development, describing it as a reaffirmation of Tamil Nadu’s status as India’s automobile capital.
Ford currently employs around 12,000 people in Tamil Nadu through its Global Business Operations centre, which supports engineering, analytics, and back-end services for the company’s global network. It also continues to offer service, parts, and warranty support to customers in India.
The engine manufacturing revival aligns with Ford’s Ford+ strategy, designed to optimise its worldwide operations across three divisions — Ford Blue for internal combustion and hybrid vehicles, Ford Model e for electric mobility, and Ford Pro for commercial customers.
Headquartered in Dearborn, Michigan, Ford Motor Company employs about 170,000 people globally. It operates under the Ford and Lincoln brands, manufacturing a broad portfolio of passenger and commercial vehicles, and offers automotive financing through Ford Motor Credit Company.