Ford announces ₹3,250 crore investment in India, bucks Trump’s ‘build local’ push
The US automaker to restart operations at its Maraimalai Nagar facility to produce high end export engines, signaling renewed confidence in India’s manufacturing potential
Mumbai, Oct 31 : Ford Motor Co. is making a comeback in India with plans to invest around ₹3,250 crore ($370 million) to revive its Maraimalai Nagar plant in Tamil Nadu, four years after halting operations in the country.
According to a person familiar with the development, the US automaker will retool the facility to manufacture high-end engines for export markets, with an annual capacity of over 200,000 units. While the engines won’t be shipped to the US, details of their destination markets remain undisclosed. An official announcement is expected soon.
The move comes at a time when US President Donald Trump’s administration has been pushing American manufacturers to ramp up domestic production under his “America First” policy. Despite that, Ford’s decision underlines its renewed confidence in India as a global manufacturing base, particularly under CEO Jim Farley, who has been refocusing the company’s operations after scaling back its electric vehicle ambitions.
Ford first established manufacturing near Chennai in 1995 and later expanded to Sanand, Gujarat, in 2015. However, after a failed partnership with Mahindra & Mahindra and cumulative losses exceeding $2 billion, the automaker exited the Indian market in 2021, selling its Sanand facility to Tata Motors.
The revival of the Tamil Nadu plant marks Ford’s strategic return to India’s industrial landscape. The state is already home to major automakers including Hyundai, Renault, Nissan, and BMW, making it a hub for automotive exports.
The investment is also part of a broader trend of US companies expanding manufacturing in India despite ongoing trade tensions between Washington and New Delhi. Apple, for instance, has significantly increased iPhone production across five plants in the country.
Ford’s latest move could potentially restore hundreds of jobs, boost local supply chains, and reaffirm India’s position as a preferred global manufacturing destination amid shifting geopolitical and economic landscapes.
