Ford shut down its EV production factories in India after showing an exciting willingness to re-consider its India exit plan. American auto major Ford did U-turn in just only three months, announcing that the company is giving up on the project of making EVs in India ( for export purposes) Despite making the portion for benefits under the government's production-linked incentive (PLI) scheme.
In addition to this, the company is all set to close its deal to sell its India factories including the first one in Chennai in Tamil Nadu and the second one at Sanand in Gujarat.
Sources said, that Tata Motors which has seen a strong recovery in the Indian passenger vehicles business, is all set to close the deal to acquire the Gujarat plant, on the other hand, the conversation is going on with a clutch of companies for Chennai, including with Ola.
The business, which had hoped to re-enter India in February after first pulling out around the middle of 2021 (when it failed to establish a joint venture with local Mahindra & Mahindra), is said to have notified its employees of the recent decision.
When approached, a Ford India spokeswoman stated, "After careful consideration, we have decided to no longer pursue EV manufacture for exports from any of the Indian factories." We are thankful to the (Indian) government for accepting our request under the Production-Linked Incentives program and for their continuous support while we pursued our investigation."
Linked Incentives program and for their continuous support while we pursued our investigation."
As of now, the company's previously announced: "business reorganization continues as planned, including the exploration of other possibilities for our production sites."
"We continue to collaborate closely with unions and other stakeholders to develop an equitable and balanced approach to alleviate the effects of restructuring," added the spokeswoman.
According to sources, the business found it difficult to establish an export-oriented EV production setup in India while being missing from the domestic market.
"Ford had an unhappy experience with India in the past, and they decided it would be prudent not to choose for local manufacture in the market again." Selling the factories to interested parties appeared to be a better option, especially given that the plants are still in good condition when compared to the General Motors factory in Maharashtra, whose sale to China's Great Wall Motors has been stalled due to diplomatic and border tensions between India and China," one of the sources said.
While the company is discontinuing local production ambitions, consumers will continue to get service and parts support in the market, according to company executives.