Tuesday, October 4, 2022
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Ford may re-enter the Indian market with electric vehicles

Global automobile company Ford Motor is planning to start business again in the Indian market with Electric Vehicles (EV). Ford had closed its business from India last year. The company is contemplating to make India a hub for manufacturing and exporting EVs. The company has also expressed the possibility of selling cars in India in the coming years.

ford had applied to participate in the Central Government’s Performance Linked Incentive (PLI) scheme. This application has been approved. This is indicating Ford’s interest in the Indian market. The objective of this scheme is to make the country attractive for automobile manufacturing and for this incentives are being offered to companies setting up manufacturing plants. Ford has two plants in India. The company says that it is exploring the possibility of using one of these plants to manufacture EVs. Ford said on exit from this market last year that the company had to take this step due to continuous losses.

However, the company does not have plans to develop electric vehicles for the Indian market yet. Ford has said that there has been no discussion about this. by ford electric vehicles and has budgeted $30 billion for this segment. The company plans to develop new fully electric and hybrid vehicles.

This could be a good time for American company Ford to enter the Indian market as the number of electric vehicles in the country is very less. However, Ford will need major upgrades to start manufacturing electric vehicles at its plants in Sanand in Gujarat and Chennai. If Ford comes back in this market, then it can increase the competition as well as make affordable electric cars available. Tesla, the world’s largest electric vehicle company, has also planned to start business in the Indian market. For this Tesla has requested the government to reduce the import duty. However, the government, however, maintains that it has no intention of reducing the import duty.

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