Ford to invest $366mn for making engines at Chennai plant; rollout from 2029

American carmaker Ford, which stopped its car manufacturing operations in India from 2021, has now said that it would carry out engine manufacturing at its factory near the southern Indian city of Chennai. "We are pleased to advance our plans and confirm the Chennai plant's vital role in Ford's manufacturing network," said Jeff Marentic, President, International Markets Group, Ford Motor Company. Ford entered India in the late-1990s, but had managed to gain less than 2percent market share, and had accumulated losses of about $2bn over a period of time. The Indian auto market is dominated by Asian brands.

Following site preparation and investment in the project that will begin later this year, the Chennai plant will have planned capacity of 2,35,000 engines annually, with production expected in 2029, Ford said in a statement. It added that the initial investment would be Rs.3,250 crores ($366mn) and that the project is expected to create more than 600 jobs. The company says that its future engine manufacturing operations at the Chennai would complement its existing engine manufacturing plant in India, which makes and exports engines.

Also Read: Maha govt denies claims of hostage taker Rohit Arya not getting dues; issues clarification

While the company mentioned that the engine lineup planned for production in Chennai would feature "all-new technology", they did not reveal details about the engine type and the specific export markets. It was mentioned that the specific details would be shared closer to the start of production. In addition to the existing engine manufacturing capacity in India, Ford employs about 12,000 individuals at its Global Business Operations in Tamil Nadu. While Ford does not sell regular mass-market cars in India after ceasing local manufacturing of vehicles from the year 2021, the brand continues to support existing customers with customer support, services, spares and warranty.