US carmaker Ford has dropped its plans to make EVs in India for the global markets.
On Thursday, the US carmaker’s Indian management communicated this to employees in the Chennai plant.
Ford India was amongst 20 different companies who were selected under the Government of India’s Production Linked Incentive Scheme announced in February 2022. But it may withdraw its application now, as it will no longer invest in the country.
People in the know say, the business case could not meet the volume projection and internal targets, hence the decision was taken to drop the plans.
In an official response, Ford India’s spokesperson confirmed and said, “After careful review, we have decided to no longer pursue EV manufacturing for exports from any Indian plants. We remain grateful to the Government for approving our proposal under the Production-Linked Incentives and being supportive while we continued our exploration.”
After announcing the exit in September of 2021, the US carmaker did apply to participate in the Government of India’s PLI scheme.
The company is likely to pursue its initial plans to sell its factories in Sanand, Gujarat and Chennai. The production at both the plants has stopped. While the Sanand plant sale talks with Tata Motors are progressing well, it is still pursuing multiple suitors for its Chennai factory, say people in the know.
In an official response, Ford India’s spokesperson confirmed and said, “After careful review, we have decided to no longer pursue EV manufacturing for exports from any Indian plants. We remain grateful to the Government for approving our proposal under the Production-Linked Incentives and being supportive while we continued our exploration.”
After announcing the exit in September of 2021, the US carmaker did apply to participate in the Government of India’s PLI scheme.
As part of the ongoing business restructuring in India, Ford had continued to explore possible alternatives for its manufacturing facilities; the spokesperson said this included applying for the production-linked incentives scheme, which allowed us to explore utilising one of the plants as a potential EV manufacturing base.
“Ford India’s previously announced business restructuring continues as planned, including exploring other alternatives for our manufacturing facilities. We continue to work closely with unions and other stakeholders to deliver an equitable and balanced plan to mitigate the impacts of restructuring,” added the spokesperson.
source:ET
