Ford returns to TN, to invest Rs 3,250 crore for ‘GenNext’ engine production in Chennai facility

American auto major Ford is returning to Chennai with an investment of Rs 3,250 crore, focusing on manufacturing next generation engines at its facility at Marailamalai Nagar in the adjoining Chengalpattu district. A Memorandum of Understanding to this effect was signed in the presence of Chief Minister MK Stalin here on Friday.

Ford had stopped manufacturing cars in 2022 after shutting down operations a year earlier at its plant in Maraimalai Nagar. When it made the company exit, it had an accumulated losses of 2 billion dollars, since its brands like EcoSport and Endeavour SUVs had less than 2 per cent market share.

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Now, it has made a comeback pledging an annual production capacity of 235,000 units with production expected to commence in 2029. Senior executives of Ford were present at the signing of the MoU at the Secretariat. The signing of the MoU followed the signing of a letter of intent in September 2024, during the visit of Stalin to the United States for investment scouting.

“Ford returns to Tamil Nadu with full throttle. Welcome Back,” was how Stalin welcomed it. “A powerful comeback that renews long and trusted partnership, as #Ford invests Rs 3250 crore in Tamil Nadu to set up a Next Gen Engine Manufacturing Unit at Maraimalai Nagar. This major investment will create 600 direct jobs and build on Tamil Nadu’s robust automobile ancillary ecosystem,” he wrote on ‘X’, adding “Ford’s decision to choose India’s automobile capital for production of such futuristic engines is another testimony for Tamil Nadu’s industrial prowess and its indisputable position in the global manufacturing supply chain!”