Ford Plans to Revive Chennai Car Plant With Rs 3,250-Crore Investment
Engine production to begin by 2029, creating 600 jobs in Tamil Nadu
Pune: American auto giant Ford on Friday confirmed plans to revive manufacturing operations at its Chennai plant, with an initial focus on producing all-new, next-generation engines without giving details.
Ford stopped making cars in India in 2021 and had last year signaled interest in restarting manufacturing in the country.
With an initial investment of Rs 3,250 crore, the company said its Chennai plant would be retooled to make high-end engines for export and would feature all-new technology, with an annual capacity of over 235,000 units.
Production is expected to start in 2029 and will create about 600 jobs, the company said in a statement.
At present, Ford employs about 12,000 people at its Tamil Nadu operations, it said.
The new engines will not be exported to the US, sources said.
The move comes even as President Donald Trump pushes companies to manufacture more in the US.
Senior Ford executives met TN Chief Minister M K Stalin on Friday and signed a memorandum of understanding (MoU) with the Tamil Nadu government that outlined a strategy to leverage India’s “manufacturing prowess” for Ford plans.
Ford’s Chennai facility is most likely to be used for export of its electric vehicle (EV) brands for the Southeast Asian market.
The MoU complements Ford India’s existing manufacturing infrastructure to produce and export engines. “We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, president of international markets group, Ford Motor Company.
“This decision reinforces our commitment to leveraging India's manufacturing prowess for future products,” he said.
Meanwhile, Maruti Suzuki, India’s biggest car maker, on Friday reported that its standalone net profit rose 7.29 per cent on year at Rs 3,293 crore in the July-September quarter.
Its net profit stood at Rs 3,069 crore in the corresponding quarter of previous fiscal year.
Its revenue from operations in Q2FY26 grew 13.16 per cent to Rs 42,100 crore from Rs 37,202 crore, on-year. The overall sales volume grew 1.7 per cent to 550,874 units in the quarter.
At the operational level, EBITDA during the September quarter was up 0.4 per cent at Rs 4,434 crore from Rs 4,417 crore.
Maruti Suzuki share price ended marginally lower after the announcement of Q2 results today.
