(MENAFN- KNN India) New Delhi, Oct 31 (KNN) American automobile major Ford Motor Company has announced an investment of around Rs 3,250 crore to manufacture powertrains at its Chennai plant.

The project will focus on developing“next-generation” engines and marks a major step in Ford's long-term manufacturing plans in India.

The company formalised the investment through a memorandum of understanding (MoU) signed with the Tamil Nadu government on Friday.

The agreement builds on a letter of intent signed in September 2024 and aims to strengthen Ford's manufacturing base in India. Senior company executives met Tamil Nadu Chief Minister M K Stalin during the signing event.

According to sources, the Chennai facility will have an annual production capacity of about 235,000 units, with operations expected to begin in 2029. The plant will complement Ford's existing infrastructure in India, which already exports engines to global markets.

Jeff Marentic, President of the International Markets Group at Ford Motor Company, said,“We are pleased to confirm the Chennai plant's critical role in Ford's global manufacturing network. This investment highlights our commitment to leveraging India's strong manufacturing capabilities for future products.”

Tamil Nadu Industries Minister T R B Rajaa welcomed the move, stating that Ford's renewed operations in Chennai will boost the state's automotive sector and generate new employment opportunities.

“This initiative reaffirms Tamil Nadu's position as a leading auto manufacturing hub with a skilled workforce and investor-friendly policies,” he said.

The new project is expected to create over 600 direct jobs, along with several indirect employment opportunities in the automotive ecosystem. Ford currently employs around 12,000 people at its global business operations centre in Tamil Nadu.

(KNN Bureau)

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