Ford Set to Return to India with Emphasis on EVs and Hybrids

Ford Motor, the global automotive giant, is gearing up for a comeback in the Indian market, with a renewed focus on hybrid and electric vehicles (EVs). Sources suggest that the company is contemplating utilizing its manufacturing facility in Chennai for producing these environmentally friendly cars.

An insider familiar with the development revealed, "In its return to India, Ford intends to leverage its strengths in the US market. Globally, Ford excels in the SUV segment, and hybrid and EV technologies have become its forte. The company aims to replicate this strategy in the Indian market." Additionally, it has been learned that Ford may have applied for a patent in India for its popular SUV model, the EcoSport.

To strengthen its presence in India, Ford is reportedly exploring potential collaborations with local manufacturing partners. Discussions have been initiated with the Tata Group for a potential joint venture. "Given Tata's leadership position in the EV segment, they are the preferred choice for Ford," stated a senior executive in the automotive sector. However, it has been clarified that Ford's re-entry into India is not contingent on the JV with Tata materializing.

The Chennai facility, strategically located near the port and offering logistical advantages, is envisioned to serve as an export hub for the Asia Pacific region. "The plant in Maraimalar Nagar will function as Ford's export hub for catering to the APAC region," disclosed one of the sources. Notably, in December 2023, Ford terminated its agreement to sell the Chennai manufacturing unit to JSW, despite the deal being considered final. Instead, Ford India's Gujarat plant was sold to Tata Motors.

Sources suggest that Ford Motor CEO Jim Farley is expected to visit India in September to finalize and execute the company's plans for re-entering the Indian market.

When approached for comment, Ford Motor refrained from addressing speculations, while Tata Motors stated, "As a policy, we do not comment on market rumors."

In September 2021, Ford halted its operations in India citing unviable operations and mounting losses. Despite talks of a comeback in 2022, plans were shelved due to unfavorable market conditions, particularly for EVs.

HBL