Ford EVs-India Gurugram/IBNS: American automobile giant Ford Motor Company is considering to manufacture electric vehicles (EVs) in India, this announcement came months after it ended selling and producing cars in the Indian subcontinent, Reuters reported.
In September, Ford had mentioned plans to abandon the Indian automobile market as it was suffering losses of USD two billion, as per media reports.
The company couldn't see a profitable path ahead, as per the company statement.
This decision has a tremendous hit on Indian PM Narendra Modi's 'Make in India' plans.
Currently, Ford owns two car plants in India.
Ford in a statement issued Friday said it was "exploring the possibility of using a plant in India as an export base for EV manufacturing."
With plans to earmark USD 30 billion in the EVs and batteries segment, Ford's India representative said the country wasn't out of the realm of discussion when it comes to selling electric cars, Reuters reported.
The company's move to halt manufacturing cars after being unable to turn a profit for two decades, allows Ford to still keep afoot in the door if it decides on re-entering the Indian market, said Gaurav Vangaal, Associate Director of Light Production Forecasting at IHS Markit.
In its consideration of India as an EVs manufacturer, Ford will need to prove whether the southeast nation is cost-competitive, for which massive funds to localise the supply chain will be a priority, he said.
The US automobile major's statement comes after the centre's approval of access to benefits under India's USD 3.5 billion scheme for clean-fuel automobiles, Reuters reported.
20 companies were approved under the PLI scheme linked to the automobile and automobile component industry, which included the likes of Hyundai Pvt Ltd, Eicher Motors Ltd, Hyundai Motor India Ltd, and Tata Motors Ltd.
The scheme is expected to be a tremendous push towards engaging automakers in proliferating production of hydrogen and electric power cars in India, as the Centre looks to provide incentives to 18 percent of new investment in the same segment.
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