Ford will return to engine production in Chennai for export markets

The carmaker said the engines will be based on a new technology but specific details on the engine type and export markets will be shared closer to production. That production is scheduled for 2029 with annual output forecast to be 235,000 engines.

“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 at Ford. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.” 

The Chennai powertrain plant, located at Maraimalai Nagar, closed in 2022 after Ford decided to end production at all of its plants in India (except for the Sanand engine plant) following a decade of poor market penetration. Engine production at the Sanand plant has continued for export to its plant in Thailand for Ranger pick-up production. The Chennai plant will also make engines exclusively for export. Ford has no plans to restart vehicle assembly in India. 

The carmaker signed a letter of intent in September 2024 with the government of Tamil Nadu in India confirming its intention to use the Chennai plant for manufacturing for export and has followed that with a memorandum of understanding outlining the strategic direction it will take to recommence engine production at Chennai and take advantage of India’s manufacturing expertise. This strategy supports its Ford+ plan.