Ford Motor Co. plans to invest about Rs 3,250 crore ($370 million) in India to produce new engines, according to a source familiar with the details. This investment comes as the US carmaker revives a factory it closed four years ago.
Ford Motor Co to invest Rs 3,250 crore in India
The manufacturing site in Maraimalai Nagar, located in Tamil Nadu, will be upgraded to produce high-end engines for export markets. It will have an annual capacity of over 200,000 units, said the source, who requested anonymity because the plans are private.
The engines will not be exported to the US, but it is unclear which countries will receive them. A announcement about this is expected as early as this week.
The US automaker first showed interest in restarting local production in India a year ago. It has been preparing for this investment for months amid rising tensions between New Delhi and Washington.
Company announce production investments
This move occurs even as Trump made improving US manufacturing—especially in the automotive sector—a key policy goal. Ford faced criticism from the president during his first term for a plan to increase production outside the US. However, it received praise more recently for announcing significant investments in its domestic plants.
Ford’s decision shows renewed confidence in India as a manufacturing hub from CEO Jim Farley. This comes as the company shifts from its earlier focus on electric vehicles. Ford set up its first manufacturing plant near Chennai in 1995 and added a second one in Sanand, Gujarat, in 2015.
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