In a significant move, Ford Motor Company is set to make a major comeback in India with an investment of around ₹3,250 crore ($370 million). The US-based automaker plans to revive its once-shuttered manufacturing facility in Maraimalai Nagar, Tamil Nadu, to produce high-end engines primarily for export. The site, which closed four years ago, will be retooled to handle an annual output of approximately 200,000 units, according to sources close to the development.
The engines will reportedly be shipped to international markets, though the destination countries remain undisclosed. An official announcement regarding the project is expected soon.
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Reviving Faith In India’s Manufacturing Power
Ford’s decision to restart operations in India underscores its renewed confidence in the country’s manufacturing ecosystem. Despite recent trade tensions between New Delhi and Washington, including former US President Donald Trump’s imposition of a 50% tariff on Indian imports, the automaker appears committed to re-establishing its industrial foothold in the region.
The move also reflects a strategic shift under CEO Jim Farley, who seems to be steering Ford back toward conventional manufacturing after a period of heavy investment in electric mobility. The Dearborn, Michigan-based company, which began production near Chennai in 1995 and later expanded to Sanand, Gujarat, had exited India in 2021 after accumulating losses exceeding $2 billion.
Ford’s India Story Comes Full Circle
Ford’s renewed investment marks a full-circle moment for the automaker. The company had previously sold its Sanand plant to Tata Motors, which now manufactures electric vehicles at the site. Ford’s re-entry into Tamil Nadu aligns with a broader trend of American companies, such as Apple and other global manufacturers, expanding production in India amid geopolitical realignments.
Tamil Nadu, one of India’s most industrialised states, remains a critical automotive hub, home to global players like Hyundai Motor Co., Renault SA, and BMW AG. With Ford reactivating its local presence, the state’s position as a cornerstone of India’s auto manufacturing sector is likely to strengthen further.
While the automaker has yet to reveal full details of its export plans, this move signals a renewed partnership between the American car giant and India’s industrial landscape, one that could potentially reshape Ford’s global production strategy.
