Ford To Invest Rs 3,250 Crore In India, But We Won’t Get Any Cars — Here’s Why

Despite the US Government strong-arming companies to manufacture domestically, Ford has built on its Letter of Intent and has entered into an agreement with the Government of Tamil Nadu to invest in the state. The American carmaker plans to invest Rs 3,250 crore for a project involving the production of next-generation engines. The production shall take place at Ford’s Chennai plant, which it still owns today, unlike its Sanand plant that it sold to Tata Motors.

Following a Letter of Intent signed back in September 2024, Ford has signed a Memorandum of Understanding (MoU) with the Government, and it is yet to enter into a definitive agreement. Moreover, it plans to only manufacture powertrains in India, that too solely for the purpose of exporting them to global markets. So we won’t really see any Ford cars returning to India; at least not in the near future.

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Ford plans to start production in 2029, and aims for an annual capacity of 2,35,000 engines. It also said that the project will generate 600 direct jobs for locals, along with more indirect jobs in the industry.

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We expect Ford to reveal details about the exact powertrains that it plans to produce, along with the destination counties, over the next few years.