Ford to Reopen Tamil Nadu Factory with ₹3,250 Crore Boost for Export Engine Production

Ford Motor Co. is gearing up to revive its operations in India with a fresh investment of around Rs 3,250 crore ($370 million), as the American automaker prepares to restart its previously shuttered plant near Chennai, Tamil Nadu, reported Bloomberg, citing a person familiar with the development.

The Maraimalai Nagar facility, which Ford closed in 2021 as part of its global restructuring, will now be retooled to manufacture high-end engines primarily for export markets. The reactivated plant is expected to have an annual production capacity exceeding 200,000 units, though details on the destination markets remain under wraps.

An official announcement could come as early as this week, sources told Bloomberg

The move marks a significant shift in Ford’s strategy under CEO Jim Farley, signaling renewed faith in India’s manufacturing ecosystem. It comes even as the US administration has maintained a tough trade stance toward New Delhi, with recent tariff escalations and political friction over oil imports from Russia.

Also Read: Ford to Restart Manufacturing From Tamil Nadu Plant After CM Stalin's Meet with Company Official | Republic World

Ford’s renewed push in India also highlights a broader pivot from its earlier electric-vehicle-centric approach to strengthening its global production base. The Dearborn-based company first entered India in 1995, establishing the Chennai plant before adding another in Sanand, Gujarat, two decades later. However, mounting losses—amounting to more than $2 billion—led Ford to wind down operations in 2021, eventually selling the Sanand plant to Tata Motors, which now manufactures EVs there.

The revival of the Tamil Nadu plant places Ford alongside a growing list of global companies expanding manufacturing in India despite trade tensions. Apple, for instance, has significantly scaled up iPhone production across multiple Indian facilities.

With Tamil Nadu already hosting major automakers such as Hyundai, Renault, and BMW, Ford’s return could bolster the state’s position as a key automotive hub and reaffirm India’s growing appeal as a global manufacturing destination, according to auto industry analysts.