A Ford logo is seen on the Ford Motor World headquarters in Dearborn, Michigan, U.S., March 12, 2025. REUTERS/Rebecca Cook

(Reuters) -Ford is planning to invest about $370 million in India to make new engines that will be exported, the U.S.-based carmaker said on Friday.

Ford stopped making cars in India in 2021 and had last year signaled interest in restarting manufacturing in the country.

The company said its Chennai manufacturing site in the southern Indian state of Tamil Nadu would be retooled to make high-end engines for export and would feature all-new technology, with an annual capacity of over 235,000 units.

Production is expected to start in 2029 and will create about 600 jobs, the company said.

Ford currently employs about 12,000 people at its Tamil Nadu operations, it said.

The development was first reported by Bloomberg News on Thursday, citing people familiar with the matter.

The new engines will not be exported to the U.S., Bloomberg News reported.

The move comes even as President Donald Trump pushes companies to manufacture more in the U.S.

($1 = 87.8950 Indian rupees)

(Reporting by Anshuman Tripathy and Komal Salecha in Bengaluru; Editing by Anil D'Silva and Mrigank Dhaniwala)