The American automobile manufacturer Ford Motor Company is now considering producing its electric vehicles in India for exporting them to other countries, and maybe in future, sell them in the Indian markets too.
As per the automaker’s statements on Friday, it is looking to enter the Indian market to manufacture EVs, an announcement that comes only months after the US carmaker decided to exit the Indian market, as it did not see a profitability path in the same.
The automaker’s sudden announcement of discontinuing car manufacture in India left many auto dealer groups and associations perplexed.
Ford Looks to Re-enter Indian Market for EV Production
The US automaker has two plants in India, and as per its statement made on Friday, the auto manufacturer is exploring the possibility of making use of one of these plants as an export base for manufacturing electric vehicles.
In May 2021, the automaker had outlined plans to boost its spending on electrification efforts by over 75%, and had set a target of achieving 40% of its global volume as all-electric by fiscal 2030.
“This is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T. Our ambition is to lead the electric revolution,” stated the company’s Chief Executive Jim Farley.
Working on those lines, Ford is considering to shift to India, its EV manufacturing unit for exports.
The Associate Director, Light Production Forecasting at IHS Markit, Gaurav Vangaal states that manufacturing in India comes with cost benefits, and the company has a history of exporting more to North America and Europe.
Both of these regions are large and growing markets for electric vehicles.
On asking whether the company would sell its EVs manufactured in India to the domestic market, the company’s spokesperson responded that while there hasn’t been any specific discussions regarding it, the realm of future consideration certainly holds the option.
Comments are closed, but trackbacks and pingbacks are open.