MoU between Ford officials and V Arun Roy, Secretary (Industries), at the Secretariat in the presence of Chief Minister M K Stalin.
Credit: DH Photo
Chennai: American automobile giant Ford will revive its Maraimalai Nagar plant near here, which has been lying dormant for over four years, by investing Rs 3,250 crore to manufacture powertrain for the export market. The fresh investment comes amid the tariff problem between the US and India.
A memorandum of understanding between Ford officials and V Arun Roy, Secretary (Industries), at the Secretariat in the presence of Chief Minister M K Stalin on Friday.
The MoU comes a year after the two sides signed a letter of intent to revive the plant, which ceased operations in September 2021 after Ford exited the Indian market.
The engine lineup planned for production in Chennai will feature all-new technology. Specific details about the engine type and export markets will be shared closer to the start of production.
Following site preparation and investment in the project that will begin later this year, the Chennai plant will have planned capacity of 235,000 engines annually, with production expected in 2029, the company said.
Ford had exited India in 2021 citing losses after it failed to make its business model successful in the highly price sensitive Indian market.
It had indicated in 2022 that it might enter the Indian market yet again with a couple of electric vehicle (EV) models and utilise the Maraimalai Nagar plant, but went back on its decision the same year.
Spread over an area of 350 acres, the company had an annual production capacity of around 200,000 vehicles and 340,000 engines. Ford was one of the first global auto giants to set shop in India in the 1990s by building a massive production unit in Maraimalai Nagar.
Ford’s entry into Chennai in 1995 laid the foundation stone for the city emerging as India’s very own Detroit, as top car makers like Hyundai, Renault-Nissan, BMW, and others flocked to the city. Tata Motors, in March, pledged to invest Rs 9,000 crore for a car manufacturing unit in Ranipet district near Chennai.