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Ford Plans To Re-Enter Indian Market With A Focus On Electric Vehicles
Ford, the well-known American carmaker, is reportedly planning a return to the Indian market. The company had exited India in 2021, pulling all its models from sale and halting key operations like manufacturing.
Reports indicate that Ford's re-entry will focus on electric vehicles (EVs) instead of internal combustion engine (ICE) vehicles. The shift towards EVs in India has been gaining momentum, with heavy promotion and increasing adoption by consumers. This environment is encouraging Ford to target the EV segment in its comeback.
According to a report by Times of India, Ford is assessing market possibilities for its return. The evaluation is based on recommendations from a high-level team, suggesting that the conditions for Ford's re-entry into India are becoming favourable.
Previously, Ford invested USD 2 billion in India, manufacturing vehicles like the EcoSport and Figo for global export. They also sold the large model Endeavour locally. However, due to inadequate upgrades, lack of new models, and rising competition, Ford exited the market in 2021.
India's new EV policy is attracting global investments, aiming to promote EV usage and transform the country into an EV production hub. The government offers various incentives to EV manufacturers, including abolishing basic customs duty on iron ore, essential for battery production.
If Ford re-enters India, it is expected to manufacture vehicles at its Chennai plant. After exiting India, several companies showed interest in acquiring this plant. Sajjan Jindal's JSW Group attempted to purchase it, but Ford retained ownership while selling its Gujarat plant to Tata Motors. Thus, it's likely that Ford will use the Chennai facility for its new cars.
Potential Manufacturing Plans
Ford is anticipated to engage in local manufacturing and exports if it returns. The company had previously exported vehicles manufactured in India globally. However, there has been no official confirmation regarding their manufacturing plans yet.
That being said, Ford's potential return to India focuses on the growing electric vehicle market. With favourable government policies and incentives, the company aims to leverage India's evolving automotive landscape for its electric vehicle segment.
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