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Ford Motor Company will restart operations at its Chennai manufacturing facility with an investment of Rs 3,250 crore to build new-generation engines for global markets. According to PTI, the American automaker, which had ceased vehicle production in India in 2021, has signed a memorandum of understanding (MoU) with the Tamil Nadu government to revive the plant. The project, part of Ford’s global Ford+ plan, aims to leverage India’s manufacturing capabilities for export-oriented production. As per the company, preparations at the site will begin later this year, with full-scale production scheduled to commence in 2029. Also Read: Made-In-India Suzuki Fronx SUV Gets 5-Star ASEAN NCAP Rating - Check Details Here Next-Generation Engine ManufacturingUnder the new plan, the Chennai facility will produce a completely new line of powertrains featuring advanced technology and updated efficiency standards. While Ford has not yet disclosed the engine specifications or destination markets, the upcoming units are expected to support the company’s next phase of global vehicle development. The reactivation of the Chennai plant is expected to deliver an annual production capacity of 2.35 lakh engines, significantly strengthening Ford’s export base from India. Employment And Economic ImpactFord stated that the new project will create over 600 direct jobs, in addition to indirect employment across ancillary suppliers and service sectors. The investment marks a positive step for Tamil Nadu’s automotive ecosystem, which has recently seen renewed momentum from both domestic and international manufacturers. Tamil Nadu Industries Minister T R B Rajaa said Ford’s decision would further boost the state’s reputation as a leading auto manufacturing hub. The move is also expected to benefit local vendors and logistics networks that had been affected since the company halted production in 2021. From Exit To RevivalFord had previously stopped vehicle and engine manufacturing in India as part of a global restructuring plan in September 2021. Its Gujarat plant in Sanand was sold to Tata Motors, while operations in Chennai remained idle due to pending restructuring and regulatory procedures. In 2023, the company submitted a Letter of Intent to the Tamil Nadu government to explore manufacturing for exports from the Chennai site. The latest MoU confirms Ford’s intent to re-establish its industrial footprint in India, this time focused purely on export-oriented engine production rather than local vehicle assembly. Also Read: Hero Xtreme 160R Accessories List — Official Add-Ons, Prices And Details What This MeansFord’s Rs 3,250 crore investment signals a strategic shift from its earlier exit to a focused re-entry into Indian manufacturing but this time as a global export hub for advanced powertrains. The decision underlines India’s growing importance in Ford’s international supply network. (With inputs from PTI)
