Ford Reverses Its Decision To Make EV In India For Exports
Ford Motor Company has announced that it will no longer produce electric cars (EVs) in India to export them. The company is examining various options for its two facilities in the country that ceased operations last year.
In February, the American automaker announced it would build electric vehicles in India and received approval for the Indian government’s $3.5 billion production-linked incentive scheme for clean-fuel vehicles.
“After careful review, we have decided to no longer pursue EV manufacturing for exports from any Indian plants,” a spokesperson for Ford India said in an email.
The company did not provide any additional information about its U-turn. Still, it did say that its previously announced business restructuring is proceeding as anticipated, including exploring alternative manufacturing sites in India.
“We continue to work closely with unions and other stakeholders to deliver an equitable and balanced plan to mitigate the impacts of restructuring,” the spokesperson added.
According to a news article in India’s Economic Times newspaper, talks with Tata Motors to sell the Sanand facility in Gujarat were proceeding smoothly, while Ford was chasing multiple suitors for its Chennai unit.
Ford announced earlier this year that it was investigating developing electric vehicles in India for export and maybe domestic sales.
After struggling for more than two decades to make profits, the company had less than 2% of the Indian passenger vehicle market when it suspended production last year.
Several automotive companies intend to produce electric vehicles in India. The government offers billions of dollars in incentives to companies that build EVs and parts locally to reduce oil imports and pollution.