Ford Motor Company has dropped its plans to make electric cars in the Indian market for the global markets. The brand’s management communicated this to employees in the Chennai plant. For people not in the know, Ford had announced to exit manufacturing in India in September 2021.
Ford India was one of the 20 different companies who were selected under the Government of India’s Production Linked Incentive Scheme – PLI scheme announced in February 2022. It is reported that Ford India may withdraw its application now. Adding to it, Ford has decided to no longer invest in the country.
People close to development said that the business case could not meet the volume projection and internal targets. This is the main reason behind the decision of cancelling plan of developing EVs in India.
Ford India will sell its factories in Sanand, Gujarat and Chennai. The company has already cease the production at both the plants. We informed you earlier that Tata Motors and Ford India are in talks for the Gujarat based plant. Tata is aiming to develop electric cars at this Ford plant.
Ford is still pursuing multiple brands for its Chennai factory. Speaking to ET, Ford India’s spokesperson said, “After careful review, we have decided to no longer pursue EV manufacturing for exports from any Indian plants. We remain grateful to the Government for approving our proposal under the Production-Linked Incentives and being supportive while we continued our exploration.”
Source – ET
