Ford is re-entering India with focus on electric vehicles: Report

• Ford is making a comeback in India, focusing on electric vehicles (EVs) and eyeing 2025 as a turning point for the EV market.

• The automaker plans to transform its Chennai plant for EV production, primarily for export, before introducing these vehicles to the domestic market.

• This move aligns with Ford’s global sustainability goals, including achieving carbon neutrality by 2050 and creating thousands of jobs in India.

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Ford will initially focus on exports

What’s the story

Ford Motor Co. is set to re-enter the Indian market after a three-year break, with a renewed focus on manufacturing electric vehicles (EVs) for global markets, according to Moneycontrol.

This strategic shift comes as the company adapts to changing demand patterns and technological advancements.

The new approach contrasts with Ford’s previous emphasis on internal combustion engine (ICE) vehicles for local sales, prior to its departure in September 2021.

Past struggles and future plans

Despite establishing a significant presence in the ICE vehicle segment with models like Figo, EcoSport, Endeavour, and Aspire, Ford faced challenges in maintaining competitiveness. This led to the company exiting the Indian market.

However, with global automotive trends now favoring EVs, Ford is realigning its strategy for future growth.

An insider revealed that “Ford has realized that 2025 will be the turning point for the EV market in India.”

Chennai plant to be repurposed for EV production

As part of its comeback strategy, Ford has expressed its intention to repurpose the Chennai plant primarily for export.

This decision was announced following discussions with Tamil Nadu Chief Minister MK Stalin during his recent US visit.

The Chennai facility, which has an annual capacity of 200,000 vehicles and 340,000 engines, is set to undergo a significant transformation under this new plan.

Ford’s initial focus on EV exports

A source revealed that Ford’s initial step will be to establish a robust supplier ecosystem for EV components, including battery parts.

“Once the supplier base is ready, the company will start producing electric cars from its Chennai facility,” the source said.

These vehicles are intended for export to global markets via nearby ports.

In the next phase, Ford plans to introduce these vehicles to the domestic Indian market.

Commitment to India and global sustainability goals

Ford’s decision to concentrate on battery electric vehicles (BEVs) aligns with its broader global sustainability goals.

The company aims to achieve carbon neutrality globally by 2050, covering its vehicles, supply chain, and operations.

This includes electrifying its entire vehicle lineup, reducing carbon emissions from manufacturing plants, and transitioning to renewable energy sources across all facilities by 2035.

Employment plans and market strategy in India

Ford currently employs 12,000 individuals in its Global Business Operations in Tamil Nadu, with plans to add between 2,500 and 3,000 more jobs over the next three years.

While Ford’s immediate focus is on exports, its long-term plans include introducing BEVs in the domestic market.

By focusing on exports initially, Ford is taking a cautious but strategic approach to avoid past pitfalls and aims to deliver high-quality BEVs to both global and Indian consumers.

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