NEW DELHI – Ford On Friday, Motor Co said it was looking into production tram (Electric vehicle) in India for export and possibly for sale in the domestic market, just a few months after the US automaker decided to Stop selling and producing cars in the country. Ford’s comments mark a shift in strategy after the company said in September that it had raised about $2 billion because it doesn’t see the path to profit and has leave the market. The decision comes as a setback for Prime Minister Narendra Modi’s “Make in India” campaign.
Ford has two automobile manufacturing plants in the country. In a statement on Friday, the company said it was “exploring the possibility of using a factory in India as an export base for electric vehicle manufacturing.”
When asked if the company might consider selling Electric Car In India too, a Ford India spokesman said, “There is no specific discussion on the matter right now, but it is not out of the realm of possibility for future consideration.”
Ford is increasingly targeting customers in what it says is “the global electric vehicle revolution.” The automaker previously said it plans to invest $30 billion in electric vehicles and the battery to 2030.
Ford, which had less than 2% of the passenger car market in India when it discontinued production in the country, has struggled for more than two decades to turn a profit. The restructuring was viewed positively by analysts.
Gaurav Vangaal, Deputy Director of Light Manufacturing Forecasting at IHS Markit, said the move allows Ford to keep the door open to re-entering India should it decide to do so at a later stage.
Vangaal says the company already exports vehicles to North America and Europe – both of which are large and growing electric vehicle markets today.
“Ford will have to prove that India can also be cost-competitive to produce electric vehicles, so it will need huge investments to localize the supply chain,” he said. the battery.
Ford’s comments about exploring India as an electric vehicle manufacturing hub come after the company’s proposal to seek incentives under the government’s $3.5 billion plan for electric vehicles. Clean fuel convenience was approved on Friday.
The plan is the cornerstone of the Modi government’s agenda to cut oil imports and reduce pollution by benefiting up to 18% of new investments by companies for power generation and hydrogen fuel-powered vehicle. Ford is among 20 other companies eligible for benefits under this program.
