Ford mulls re-entry into Indian market with focus on EVs
Ford, a leading US automaker, is considering a comeback to the Indian market with a focus on electric vehicles and sustainability. This information was revealed in a feasibility report, awaiting review by CEO Jim Farley and the global team at the firm's headquarters. The company had previously withdrawn from India in 2021, but is now preparing for potential new investments and production targeting both local sales and exports.
Previous investments and success
Ford has a history of significant investment in India, having previously poured over $2 billion into the market. The company found success with cars like the EcoSport mini-SUV and the Figo small car. As growth slows in Western countries, Ford is now viewing India as a crucial market for future expansion. With China's and Europe's markets not being as significant for the company, India becomes a focus for growth.
Re-entry plans involve revamping Chennai plant
If approved, Ford's re-entry strategy will include a significant revamp of its Chennai facility. This will require legal preparations and updates to existing machinery to restart production. An early sign of Ford reconsidering its exit from India emerged last year, when the firm decided not to sell its Chennai plant to Sajjan Jindal's JSW, after having already sold its Gujarat factory to Tata Motors.
Ford's history and challenges in India
Ford's presence here dates back to 1995. Despite three decades in the nation and partnerships with Mahindra, the company struggled to establish a stable business. The joint ventures with Mahindra, initiated in the late 1990s and then again around 2019, did not yield the expected results.
