The company said, building on the letter of intent signed in September 2024, representatives from Ford and the government of Tamil Nadu signed an MoU outlining the strategic direction that leverages India’s manufacturing expertise as part of the Ford+ plan.
Published Oct 31, 2025 | 1:11 PM ⚊ Updated Oct 31, 2025 | 1:11 PM
Tamil Nadu Chief Minister MK Stalin and other officials during a meeting with Ford India officials. (X)
Synopsis: Ford Motor Company signed a Memorandum of Understanding with the government of Tamil Nadu to establish a new engine manufacturing line at its Chennai plant. The project is expected to create over 600 jobs in the state.
Automobile major Ford Motor Company signed a Memorandum of Understanding (MoU) with the government of Tamil Nadu to establish a new engine manufacturing line at its Chennai plant. The project is expected to create over 600 jobs in the state
The agreement follows the letter of intent signed during Chief Minister MK Stalin’s visit to the United States in September 2024.
The MoU was signed in the presence of Chief Minister MK Stalin and Minister for Industries TRB Rajaa.
As part of the agreement, Ford will invest Rs 3,250 crore to set up the facility. Production is scheduled to begin in 2029, while site preparation is expected to start later this year.
In a press release on Friday, 31 October, Ford confirmed its plans for powertrain manufacturing at its Chennai plant, focused on producing all-new, next-generation engines.
The company said, building on the letter of intent signed in September 2024, representatives from Ford and the government of Tamil Nadu signed an MoU outlining the strategic direction that leverages India’s manufacturing expertise as part of the Ford+ plan.
It added that the plan 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. 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,” said Jeff Marentic, president, International Markets Group, Ford Motor Company.
The engine lineup planned for production in Chennai will feature all-new technology. The company said 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 energise the resurgent automotive sector of Tamil Nadu and speaks volumes about the State’s robust manufacturing ecosystem, highly skilled workforce, and excellent investor facilitation under the leadership of Chief Minister MK Stalin,” said Tamil Nadu Industries Minister Rajaa.
“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,” he added.
The company announced that, following site preparation and investment, the project will begin later this year. The Chennai plant will have a planned capacity of 235,000 engines annually, with production expected in 2029.
“With an initial expected investment of ₹250 crores, the project is expected to create more than 600 jobs, plus indirect jobs across the industry. Alongside this manufacturing presence, Ford currently employs approximately 12,000 talented individuals in its Global Business Operations in Tamil Nadu,” the company said.
Ford continues to serve its existing customers in India with comprehensive customer support, including service, aftermarket parts and warranty support, it added.
(Edited by Muhammed Fazil.)
