Ford to Re-Enter India With Big EV Plans

Ford Motor Company is making a significant comeback to the Indian market after a three-year absence, targeting the production of electric vehicles (EVs) for export. This strategic shift comes as the company adapts to evolving market demands and technology, moving away from its previous focus on internal combustion engine (ICE) vehicles.

A New Direction

Ford’s previous operations here included popular models like the Figo and EcoSport. However, after struggling with dwindling sales and talks of a joint venture with Mahindra failed, the carmaker exited the market in September 2021. During the time of its exit, it had less than 2% market share. To make the most of the green mobility wave, Ford aims to revamp its Chennai plant for EV production, highlighting its commitment to sustainability. By 2050, it aims to achieve carbon neutrality worldwide, impacting its vehicles, operations and supply chain.

Chennai Plant Transformation

The Chennai facility, which has a production capacity of 200,000 vehicles annually, will be repurposed primarily for export under the Ford+ growth plan. This decision follows discussions with Tamil Nadu Chief Minister MK Stalin during his recent trip to the United States. Ford plans to establish a robust supplier ecosystem for EV components, enabling the production of electric cars that will be exported via nearby ports. For those not in the know, Tata Motors bought Ford’s Sanand, Gujarat, facility for over Rs 7 billion in 2022.

Strategic Employment Growth

Currently, Ford employs around 12,000 people in Tamil Nadu and aims to hire an additional 2,500 to 3,000 jobs over the next three years. This growth is part of Ford’s larger strategy to leverage India’s manufacturing capabilities and meet global market demands.

Long-Term Vision

While the immediate focus is on exports, Ford intends to eventually introduce its EVs to the Indian market., anticipating that the domestic market will become one of the fastest-growing markets for electric cars. Reports suggest that the Ford Mustang Mach-E may make its debut here. This cautious, strategic growth aims to avoid the challenges Ford faced during its previous stint in India, positioning the company for long-term success.

As Ford prepares for this new chapter, its commitment to electric vehicles reflects a broader shift in the automobile industry, promising a significant impact on both local and global markets.

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