Ford India finds itself in a bit of a quagmire as it keeps reconsidering its decisions. Earlier, it was about leaving India in the first place, now, it is about EV manufacturing plans.
Ford India axes the plans to manufacture EV products in India. This comes after it put forth a bid to become eligible under the PLI (Production-Linked Incentive) scheme by the Indian government that has allocated billions of dollars to foreign car makers deciding to manufacture EVs in India. As a matter of fact, Ford received the PIL, but then, shockingly, decided to give it up and plans to sell its two manufacturing plants in the country.
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Ford Axes EV Manufacturing Plans
Back in September 2021, Ford announced that it will no longer manufacture cars in India leaving the fans utterly disappointed. It cited the huge losses it incurred in the country after operating here for around 25 years. That came as a shock to the Ford car owners who were left wondering about what would follow next in terms of aftersales service and spares for the existing vehicles. Just when they were getting the hang of things, Ford announced in February 2022 that will make a comeback into our market and will manufacture its EVs to be exported from its Tamil Nadu and Gujarat manufacturing plants. That is when it applied for the government’s PIL scheme and got approval.
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However, just a couple of months after, it takes a U-turn yet again and announces that will not manufacture its EVs in our market. As far as the manufacturing plants go, it is planning to sell those off. Perhaps, that is what makes sense for the finances instead of manufacturing. But these are all speculations. The American carmaker has mentioned no official reason for doing this. This has led to disappointment among the Ford loyalists for the second time in almost 6 months.
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According to some reports, Tata Motors is eyeing one of the two manufacturing plants, while the other is being targeted by Ola to manufacture its electric scooters. Tata Motors is evidently in a rush to come up with a ton of EVs over the next few years having unveiled the Curvv and Avinya concepts already. In the long run, it could benefit immensely from acquiring this plant. What do you have to say about this news that Ford axes its EV production plans in India?