Automobile major Ford Motor Company has confirmed plans to revive manufacturing operations at its Chennai plant, focusing on the production of all-new, next-generation engines. The project will involve an initial investment of Rs 32.5 billion and is expected to generate over 600 jobs, the company announced in a statement on 31 October 2025.

Ford had halted production at its Maraimalai Nagar facility in Chennai in 2021 but expressed renewed interest in restarting operations during Chief Minister M.K. Stalin’s visit to the United States in September 2024, when it submitted a Letter of Intent (LoI) to the Government of Tamil Nadu.

Building on the LoI, representatives from Ford and the Tamil Nadu government have now signed a Memorandum of Understanding (MoU) that outlines a strategic roadmap to leverage India’s manufacturing expertise as part of the company’s global Ford+ strategy.

The project is scheduled to commence later this year, with the Chennai plant expected to achieve a production capacity of 235,000 engines annually by 2029.

Jeff Marentic, President of Ford’s International Markets Group, said: “We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network. We are thankful to the Government of Tamil Nadu for its continued support as we move forward. This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products.”

T.R.B. Rajaa, Tamil Nadu Minister for Industries, said the move would further strengthen the state’s resurgent automotive sector. “This speaks volumes about Tamil Nadu’s robust manufacturing ecosystem, skilled workforce, and excellent investor facilitation under the leadership of Chief Minister M.K. Stalin,” he stated.

He added that the project marks a major step towards the future of the automotive industry, with Tamil Nadu supporting the production of next-generation engines and reaffirming its position as India’s automotive manufacturing hub.

Ford’s decision to resume operations in Chennai underscores the renewed investor confidence in Tamil Nadu’s industrial environment and reflects India’s growing importance in the global automotive value chain.