U.S. automaker Ford has dropped its plans to produce electric vehicles in India for its global markets.
In an official response, a spokesperson of Ford India has stated: “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.” –according to The Economic Times.
After announcing their plans to exit in September 2021, Ford applied for the Government of India’s PLI scheme.
People who have knowledge on the matter said that the business case could not meet the volume projection and internal targets, thus it was decided to drop the plans.
It was also reported that Ford might pursue its initial plans on selling its factories in Sanand, Gujarat and Chennai, on which production has both stopped. According to people familiar with the matter, the Sanand plant’s sales talks with Tata Motors are progressing well, while the Chennai factory is pursuing multiple suitors.
The spokesperson also said that Ford is exploring possible alternatives for its manufacturing facilities and producing electric vehicles in India. “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,” they said.