Get ready, India! Ford is making a powerful return, injecting a massive Rs 3,250 crore investment into its Chennai manufacturing facility. This significant move marks a renewed commitment from the American automotive giant, following the signing of a Memorandum of Understanding (MoU) with the Government of Tamil Nadu. The primary goal? To kickstart the production of cutting-edge, next-generation powertrains right here in India.
This exciting development comes after Ford’s initial Letter of Intent in 2024, solidifying their promise to transform the Chennai plant into a global hub for engine manufacturing. While the full specifications of these advanced powertrains and their target export markets are still under wraps, we can anticipate a future where Made-in-India Ford engines power vehicles around the world.
Operations at the revitalized Chennai facility are slated to begin in 2029, with an ambitious annual production capacity of approximately 2.35 lakh (235,000) engines. Beyond boosting industrial output, this venture is a major win for employment, projected to generate over 600 direct jobs and countless indirect opportunities throughout the automotive supply chain.
It’s worth noting that this strategic shift comes almost four years after Ford ceased local vehicle manufacturing in India. In September 2021, the company had announced a global restructuring, opting to concentrate solely on imported models for the Indian market.
Currently, there are no explicit indications of Ford re-entering the Indian passenger vehicle market with locally produced models. The immediate focus remains firmly on the Chennai plant’s role as an export-oriented powertrain manufacturing hub. Crucially, Ford reassures its existing customers in India that full service, spare parts, and warranty support for their vehicles will continue uninterrupted.
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