Ford Motor Company said it has dropped plans to manufacture electric vehicles (EVs) in India for export while it explores alternatives for its two factories in the country that stopped production last year.
Ford Motor Company on Thursday said it has abandoned plans to manufacture electric vehicles (EVs) in India for export while it explores alternatives for its two factories in the country that stopped production last year.
The US carmaker said in February that it would manufacture EVs in India and also got approval for the Indian government’s $3.5 billion production-linked incentive plan to make clean-fuel vehicles.
“After careful review, we have decided not to pursue EV manufacturing for export from any Indian plant,” a Ford India spokesperson said in an email.
The company did not offer details on its U-turn, while adding that its already announced business is continuing as per the restructuring plan, which also includes exploring options for its manufacturing facilities in India.
“We continue to work closely with unions and other stakeholders to deliver an equitable and balanced plan to mitigate the effects of the restructuring,” the spokesperson said.
India’s Economic Times newspaper, citing people familiar with the matter, said in a report that talks with Tata Motors for the sale of the Sanand plant in Gujarat were going well, while Ford was pursuing several claimants for its Chennai factory. Was getting it done.
Earlier this year, Ford said it was looking at producing electric vehicles for export in India and possibly for sale in the domestic market.
The company, which had less than 2% of the Indian passenger vehicle market when it stopped production in the country last year, had struggled for more than two decades to turn profits.
With several carmakers planning to make EVs in India, the government is offering billion-dollar incentives to make EVs and their parts locally as it seeks to cut oil imports and pollution.
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