Ford Motor Company has planned to invest about Rs 3,250 crore in India as the company restarts its production,n which was shut four years back, reported the Economic Times, quoting a person familiar with the matter. Ford's manufacturing unit located in Tamil Nadu's Maraimalai Naga will restart to manufacture car engines for export markets with an annual capacity of over 200,000 units.
However, the engines which will be manufactured at the unit in Tamil Nadu is not clear where it will be exported. The company to make an official announcement soon this week about the reopening. The US automaker was preparing the investment for a long back against the backdrop of India-US tariff tensions.
US President Donald Trump imposed a 50% tariff on Indian imports earlier this year in a trade standoff and has lashed out at the Asian country's purchase of Russian oil. The move comes even as US President Trump is pushing for domestic manufacturing items, especially for the automotive industry.
Ford's decision shows confidence in India as a manufacturing base from Chief Executive Officer Jim Farley and comes as it pivots from a previous focus on electric vehicles. The Dearborn, Michigan-based company first set up manufacturing near Chennai in 1995 and added a second plant in Sanand, Gujarat, in 2015, according to Economic Times. Tamil Nadu's Ford manufacturing unit is one of the largest industrialised states and a long-time automaking hub.