Ford Motor Co. is preparing to invest approximately Rs 3,250 crore in India to revive production operations at its Maraimalai Nagar facility in Tamil Nadu, according to multiple credible news reports citing people familiar with the development.
The investment, estimated at around USD 370 million, will be directed toward producing advanced internal combustion engines intended for export to global markets.
The Maraimalai Nagar plant, which has been inactive since Ford halted vehicle manufacturing in India in 2021, will be refurbished and retooled to support the scale of engine production Ford is planning.
The annual capacity of the revived plant is expected to exceed 200,000 engines.
Sources said the engines produced in India will be exported to markets outside the United States, though Ford has not disclosed final destination markets for the exports.
The company’s decision indicates that India will serve as a key export hub rather than a base for domestic vehicle manufacturing in the near term.
This move comes at a time when the U.S. political establishment is advocating strongly for American companies to prioritize domestic output.
Recent policy direction from Washington, including renewed pressure from former President Donald Trump and a political focus on reshoring manufacturing, has centered around discouraging U.S. corporations from shifting investment overseas.
Ford’s decision to allocate new capital toward India rather than the United States is being seen by industry observers as a strategic statement that global manufacturing efficiency continues to outweigh political pressure.
Reports indicate that the Tamil Nadu state government has been keen to revive operations at the plant, which was among Ford’s earliest investments in India dating back to the 1990s.
The revival of the factory is expected to generate employment opportunities locally and re-energize the surrounding vendor ecosystem.
The region is already home to a strong automotive supply chain and is a preferred destination for export-oriented automobile manufacturing, with several multinational automakers maintaining operations there.
Ford’s retreat from the Indian passenger vehicle market in 2021 followed decades of financial strain, during which the automaker accumulated losses exceeding USD 2 billion in the country.
At that time, Ford concluded that the scale and profitability required for long-term sustainability in India’s competitive mass-market passenger segment were difficult to achieve.
Shifting to a component- and export-focused model allows the company to leverage India’s cost competitiveness without directly competing in the domestic automotive marketplace.
Industry analysts say the decision signals Ford’s renewed confidence in India as a manufacturing and export base at a time when multinational automakers are diversifying their production networks beyond China.
The move also reflects a broader trend in which India is emerging as a strategic alternative for global manufacturing, supported by an improving business environment and government incentives encouraging industrial investment and exports.
The company has not yet issued a formal public announcement detailing timelines or employment projections, but regulatory filings and government sources indicate the approval process for the investment is in the advanced stage.
The initiative is expected to be rolled out in phases, with production activity likely to begin once retooling of the plant is completed.
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