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Ford’s Big Bet on Chennai: ₹3,250 Crore for Next-Gen Engine Production
In a major boost to India’s automotive sector, Ford Motor Company has announced plans to revive its Chennai manufacturing plant with a massive ₹3,250 crore investment. The move marks Ford’s strategic shift toward making India a global hub for next-generation engine production, catering to markets like Europe and North America.
Why Ford Is Returning to Chennai
Nearly two years after exiting vehicle production in India (September 2021), Ford is reigniting its Chennai facility—previously used for engine exports—to manufacture advanced internal combustion engines (ICE) and hybrid powertrains.
- Strategic Location: Chennai’s port access and supplier ecosystem make it ideal for exports.
- Existing Infrastructure: The plant already ships 3.5+ lakh engines annually to the US, Mexico, and China.
- Cost Efficiency: India’s competitive manufacturing costs align with Ford’s global supply chain strategy.
A Ford spokesperson stated: “India remains pivotal to our global operations. This investment reinforces our commitment to high-tech manufacturing here.”
Economic Impact & Job Creation
The revival is expected to:
✔ Create hundreds of jobs in Tamil Nadu.
✔ Strengthen the state’s reputation as India’s auto manufacturing capital (hosting Hyundai, Nissan, and others).
✔ Attract ancillary industries, boosting the local supplier network.
Auto expert Rajesh Menon notes: “Ford’s decision signals confidence in India’s manufacturing potential—it could lure other global players.”
Next-Gen Engines & Sustainability Focus
Ford’s Chennai plant will:
– Produce Euro 7 and BS-VI Stage II-compliant engines.
– Explore hybrid powertrains, aligning with global emission norms.
– Focus on export markets rather than domestic car sales.
Government Policies & Future Prospects
Key factors driving Ford’s decision:
✅ PLI Scheme: India’s Production-Linked Incentive for auto tech.
✅ Tamil Nadu’s business-friendly policies, skilled labor, and infrastructure.
While Ford has no plans to re-enter passenger vehicle sales in India, a successful engine export business could pave the way for future EV or hybrid production.
Conclusion
Ford’s ₹3,250 crore Chennai revival underscores India’s growing role in global auto manufacturing. By prioritizing engine exports and sustainable tech, Ford is rewriting its India story—one that could reshape its global supply chain strategy.
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