Ford Motor(US:F) MINT·2025-10-31 06:30Core Viewpoint - Ford Motor Co. is set to invest approximately 32.50 billion rupees ($370 million) in India to manufacture new engines, indicating renewed confidence in the Indian market despite political tensions with the US [1][3]. Investment Plans - The investment will focus on retooling the Maraimalai Nagar manufacturing site in Tamil Nadu to produce high-end engines for export markets, with an annual capacity exceeding 200,000 units [2]. - The engines produced will not be exported to the US, and the specific export destinations remain unclear, with an announcement expected soon [2]. Historical Context - Ford had previously indicated interest in resuming local production in India a year ago, following a period of heightened tensions between New Delhi and Washington, including a 50% tariff on Indian imports imposed by Trump [3]. - The company had faced criticism from Trump for its plans to increase production outside the US but has recently received praise for its domestic investments [4]. Strategic Shift - The decision to invest in India reflects a strategic pivot from Ford's earlier focus on electric vehicles, as expressed by CEO Jim Farley [5]. - Ford had previously exited the Indian market after incurring losses exceeding $2 billion, selling its Sanand vehicle plant to Tata Motors [6][7]. Industry Landscape - Despite political tensions, other US companies, including Apple Inc., have been expanding their manufacturing presence in India, indicating a broader trend of US firms investing in the region [8]. - Tamil Nadu, where Ford plans to restart its facility, is a significant industrial hub in India, hosting manufacturing operations from major automotive companies like Hyundai, Renault, and BMW [9].