On the Dash:
- Ford will invest $366 million to restart engine production in India by 2029.
- The move marks a return after four years and over $2 billion in prior losses.
- The decision shows renewed confidence in India despite U.S.-India trade tensions.
Ford announced plans to invest about 32.5 billion rupees ($366 million) to restart manufacturing operations in India, marking a significant return to a market the company exited four years ago.
The automaker said Friday that its Maraimalai Nagar plant in Tamil Nadu will be retooled to produce high-tech engines for export markets, with an annual capacity of 235,000 units. Work on the site is set to begin this year, and production is scheduled to start in 2029. Details on the engines and destination markets will be revealed closer to launch.
The decision reflects Ford’s renewed confidence in India as a global manufacturing base. It highlights a strategic shift as Ford pivots away from its previous emphasis on electric vehicles toward strengthening its international production footprint.
Ford’s return to India comes despite heightened political and trade tensions between New Delhi and Washington. President Donald Trump has promoted domestic manufacturing and imposed a 50% tariff on Indian imports earlier this year. Nevertheless, Ford is moving forward with its investment, signaling its long-term commitment to India’s auto sector.
Ford established operations near Chennai in 1995 and added a second plant in Gujarat in 2015. However, in 2021, Farley shut down Indian manufacturing operations after scrapping a partnership with Mahindra & Mahindra Ltd., citing unprofitable conditions. The company sold its Sanand plant to Tata Motors after accumulating more than $2 billion in losses.
India’s growing importance as a global manufacturing hub has since drawn renewed interest from multinational companies, and Tamil Nadu remains one of the country’s top automotive regions, home to facilities operated by Hyundai, Renault, and BMW.
