Ford said it is exploring the possibility of using a plant in India as an export base for EV manufacturing that could potentially be sold in the country as well.
see photosFord may only produce electric cars at one of its plants in India for export
Ford Motor Company on Friday said it is looking at producing electric vehicles (EVs) for export in India, and possibly for sale in the domestic market, after the US automaker stopped selling and manufacturing cars in the country. Only a few months after I decided to do so. Ford’s comments signaled a change in strategy, as it was taking a nearly $2 billion hit in September because it didn’t see a path to profitability and was leaving the major auto market. The decision came as a blow to Prime Minister Narendra Modi’s “Make in India” campaign.
Read also: Ford to make fresh investment of up to $20 billion in EV push: Report
Ford has two car plants in the country. In a statement on Friday, the company said it was “exploring the possibility of using a plant in India as an export base for EV manufacturing.”
Asked whether the company might consider selling electric cars in India as well, a Ford India spokesperson said, “There is no specific discussion on this yet, but it is not out of scope for future consideration.”
Ford is increasingly targeting customers as the “global electric vehicle revolution.” The automaker has previously said it plans to invest $30 billion in EVs and batteries by 2030.
Ford, which had less than 2 percent of the Indian passenger vehicle market when it ceased production in the country, struggled to turn a profit for more than two decades. The restructuring was viewed positively by analysts.
Gaurav Vangal, associate director of light production forecasting at IHS Markit, said the move allows Ford to keep a door open for re-entering India.
Ford’s remarks to explore India as an EV manufacturing hub comes after the company proposed to seek incentives under the government’s $3.5 billion PLI scheme.
Vangal said there is a cost-benefit to manufacturing in India, and the company has historically exported vehicles to North America and Europe — both now large and growing EV markets.
“Ford will have to prove that India can also be cost-competitive to manufacture EVs, which will require large investments to localize its supply chain,” he added. Battery.
Read also: Ford may spin-off the EV unit as a part of the restructuring
Ford’s comments to explore India as an EV manufacturing hub came after the company’s proposal on Friday sought incentives under the government’s $3.5 billion plan for clean-fuel vehicles.
The scheme is the cornerstone of the Modi government’s agenda to cut oil imports and reduce pollution by providing benefits of up to 18 per cent of new investments made by companies to manufacture electric and hydrogen fueled vehicles. Ford is among 20 other companies eligible for benefits under the plan.
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