India, Nov. 1 -- Despite the US Government strong-arming companies to manufacture domestically, Ford has built on its Letter of Intent and has entered into an agreement with the Government of Tamil Nadu to invest in the state. The American carmaker plans to invest Rs 3,250 crore for a project involving the production of next-generation engines. The production shall take place at Ford's Chennai plant, which it still owns today, unlike its Sanand plant that it sold to Tata Motors.

Following a Letter of Intent signed back in September 2024, Ford has signed a Memorandum of Understanding (MoU) with the Government, and it is yet to enter into a definitive agreement. Moreover, it plans to only manufacture powertrains in India, that too solely f...