Ford Motor Co announced on Friday that it is contemplating developing electric vehicles (EVs) in India for export and potentially for also selling them in the domestic market, just months after the company chose to discontinue selling and manufacturing automobiles in the nation.
Ford's remarks signal a reversal in approach after the company announced in September that it would take a $2 billion blow because it does not see a path to profitability and would exit the major auto market. Prime Minister Narendra Modi's "Make in India" initiative suffered a setback as a result of the decision.
Ford has two car plants in the country.
It was "exploring the possibility of using a plant in India as an export base for EV manufacturing," the company said in a statement on Friday.
Answering a question about whether the business would explore selling electric vehicles in India, a Ford India official stated, "There have been no specific discussions on this right now, but it is not out of the realm of future consideration."
Ford is increasingly focusing on customers as part of what it calls a "global electric vehicle revolution." The manufacturer previously stated that it intends to invest $30 billion in EVs and batteries by 2030.
Ford had fewer than 2 per cent of the Indian passenger vehicle market when it ceased manufacture in the nation, having failed to make a profit for more than two decades. Analysts evaluated the restructure favorably.
According to Gaurav Vangaal, Associate Director, Light Production Forecasting at IHS Markit, the action allows Ford to keep the door open to re-enter India if it so chooses in the future.
Manufacturing in India offers a cost advantage, and the company has historically exported automobiles to North America and Europe, both of which are now big and expanding EV markets, according to Vangaal.
"Ford will have to prove India can also be cost-competitive for making EVs, for which it will need big investments to localize the supply chain," he said, adding that it will also need to figure out how it would source lithium-ion batteries.
Ford's remarks about exploring India as an EV production base came after the government approved the company's petition to seek incentives under the government's $3.5 billion clean-fuel vehicle incentive program on Friday.
The initiative is a cornerstone of the Modi government's effort to reduce oil imports and pollution by providing tax breaks of up to 18 percent on new investments in electric and hydrogen fuel-powered vehicles made by firms. Ford is one of 20 corporations that are eligible for incentives under the scheme.
(Source:www.usnews.com)
Ford's remarks signal a reversal in approach after the company announced in September that it would take a $2 billion blow because it does not see a path to profitability and would exit the major auto market. Prime Minister Narendra Modi's "Make in India" initiative suffered a setback as a result of the decision.
Ford has two car plants in the country.
It was "exploring the possibility of using a plant in India as an export base for EV manufacturing," the company said in a statement on Friday.
Answering a question about whether the business would explore selling electric vehicles in India, a Ford India official stated, "There have been no specific discussions on this right now, but it is not out of the realm of future consideration."
Ford is increasingly focusing on customers as part of what it calls a "global electric vehicle revolution." The manufacturer previously stated that it intends to invest $30 billion in EVs and batteries by 2030.
Ford had fewer than 2 per cent of the Indian passenger vehicle market when it ceased manufacture in the nation, having failed to make a profit for more than two decades. Analysts evaluated the restructure favorably.
According to Gaurav Vangaal, Associate Director, Light Production Forecasting at IHS Markit, the action allows Ford to keep the door open to re-enter India if it so chooses in the future.
Manufacturing in India offers a cost advantage, and the company has historically exported automobiles to North America and Europe, both of which are now big and expanding EV markets, according to Vangaal.
"Ford will have to prove India can also be cost-competitive for making EVs, for which it will need big investments to localize the supply chain," he said, adding that it will also need to figure out how it would source lithium-ion batteries.
Ford's remarks about exploring India as an EV production base came after the government approved the company's petition to seek incentives under the government's $3.5 billion clean-fuel vehicle incentive program on Friday.
The initiative is a cornerstone of the Modi government's effort to reduce oil imports and pollution by providing tax breaks of up to 18 percent on new investments in electric and hydrogen fuel-powered vehicles made by firms. Ford is one of 20 corporations that are eligible for incentives under the scheme.
(Source:www.usnews.com)
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