Chennai/Mumbai: American automaker Ford has signed an MoU with the Tamil Nadu government on Friday for a Rs 3250 crore investment to manufacture engines at its shuttered Maraimalai Nagar plant near Chennai.
Following site preparation and investment in the project that will begin later this year, Ford said its Chennai plant will have planned capacity of 235,000 engines annually, with production expected in 2029. The project is expected to create more than 600 jobs, plus indirect jobs across the industry.
ET was the first to report on March 18 that the company was looking to manufacture and export engines and related components. Later, on October 11, ET had reported that top executives at the company were expected to have a meeting to discuss the future of the facility.
Representatives from Ford met chief minister MK Stalin on Friday morning and confirmed plans to produce all-new, next-generation engines, building on the letter of intent that was signed by the company in September 2024. The Michigan-based company said this complements Ford’s existing engine manufacturing plant in India, which produces and exports engines, thereby ensuring India continues to be vital to the company’s operations in the region.
“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” Jeff Marentic, president, International Markets Group, Ford Motor Company said in a statement. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”
The engine lineup planned for production in Chennai will feature all-new technology but the company said that specific details about the engine type and export markets will be shared closer to the start of production.
“Ford’s decision to commence manufacturing in Chennai will further energize the resurgent automotive sector of Tamil Nadu," Tamil Nadu industries minister TRB Rajaa said. “This is not just the start of manufacturing at the existing Ford facility, it is the State taking yet another step towards the future of the automotive industry with the production of next-gen engines. We remain committed to supporting Ford's operations here.”
Following site preparation and investment in the project that will begin later this year, Ford said its Chennai plant will have planned capacity of 235,000 engines annually, with production expected in 2029. The project is expected to create more than 600 jobs, plus indirect jobs across the industry.
ET was the first to report on March 18 that the company was looking to manufacture and export engines and related components. Later, on October 11, ET had reported that top executives at the company were expected to have a meeting to discuss the future of the facility.
Representatives from Ford met chief minister MK Stalin on Friday morning and confirmed plans to produce all-new, next-generation engines, building on the letter of intent that was signed by the company in September 2024. The Michigan-based company said this complements Ford’s existing engine manufacturing plant in India, which produces and exports engines, thereby ensuring India continues to be vital to the company’s operations in the region.
“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” Jeff Marentic, president, International Markets Group, Ford Motor Company said in a statement. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”
The engine lineup planned for production in Chennai will feature all-new technology but the company said that specific details about the engine type and export markets will be shared closer to the start of production.
“Ford’s decision to commence manufacturing in Chennai will further energize the resurgent automotive sector of Tamil Nadu," Tamil Nadu industries minister TRB Rajaa said. “This is not just the start of manufacturing at the existing Ford facility, it is the State taking yet another step towards the future of the automotive industry with the production of next-gen engines. We remain committed to supporting Ford's operations here.”
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