Ford to invest $370 million to revive engine production plant in India despite US trade tensions
Ford Motor Co. plans to invest approximately $370 million in India to restart its Maraimalai Nagar plant in Tamil Nadu for producing high-end engines primarily for export. This marks a significant return to manufacturing in India after a 4-year hiatus despite past losses and ongoing trade tensions with the US under former President Trump. The retooled factory will have a production capacity exceeding 200,000 units annually.
Ford Motor Company is making a substantial investment of around $370 million (about ₹32.5 billion) to revive its previously shuttered Maraimalai Nagar manufacturing facility in Tamil Nadu, India. This facility will be retooled to manufacture over 200,000 high-end engines annually, primarily for export markets, though the exact destinations remain undisclosed. This move represents a major return to local production after Ford shut operations in India in 2021 following significant losses exceeding $2 billion and selling its Sanand plant to Tata Motors. The investment signals renewed confidence in India as a global manufacturing hub under CEO Jim Farley, contrasting with the trade tensions and tariffs imposed by then US President Donald Trump, who had pushed for more domestic manufacturing in the US. Despite Trump's 50% tariff on Indian imports earlier in 2025, Ford's decision underscores a strategic recalibration that embraces India’s manufacturing potential, especially within the automotive sector. Tamil Nadu, a key automotive region hosting multiple global automakers, stands to strengthen its industrial base through this revival. Ford's past focus on electric vehicles has shifted somewhat as it expands traditional engine production for international markets. An official announcement regarding the investment was anticipated imminently. This development aligns with broader trends of American companies deepening manufacturing ties with India despite geopolitical and trade challenges.[1][2][3][5][7]
