Ford to Revive Chennai Plant in India for Next-Gen Engine Production by 2029

Ford Motor Company has announced plans to revive its Chennai manufacturing plant in India to produce next-generation engines for global markets, with production set to begin by 2029.

Under its Ford+ growth strategy, the American automaker will invest Rs 3,250 crore in the facility, which will have a planned annual capacity of 2.35 lakh engines. Site preparation is expected to start later this year. The project is also expected to generate over 600 direct jobs and several indirect opportunities across the supply chain.

“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, President, International Markets Group, Ford Motor Company.

While the announcement marks a significant industrial comeback, it does not signal Ford’s return to India’s passenger vehicle market. The new Chennai operations will focus on export-oriented powertrains, aligning with the company’s global powertrain roadmap.

Ford had ceased vehicle production in India in 2021 after nearly three decades, citing unsustainable losses. The latest move — formalized through an MoU with the Tamil Nadu government — represents a major post-pandemic investment by a U.S. carmaker in India and a renewed commitment to leveraging the country’s manufacturing capabilities for global operations.