Ford Motor Company has revealed on Friday that it is reconsidering its decision to stop production in India. The company is thinking about producing EVs in India for export purposes and also for sale in domestic market of India.
Few months back Ford decided to stop production in India because it was not able to see profitability in it. The decision was a major setback for PM Modi’s vision for Made In India Campaign. Currently company owns two production plants in India.
In a major decision shift Ford wants to make India an export base for its electronic vehicles segment. Media persons also asked company officials about their plans to sell EVs in India to which they said, “there have been no specific discussions on this right now, but it is not out of the realm of future consideration.”
Ford is currently on a journey to bring a huge ‘global electric vehicle revolution’. Under the project it is planning to invest more than 30 billion dollars in electronic vehicles and batteries over a span of 8 years by 2030.
Also read:
KFC, Pizza Hut Apologizes Over Post On Kashmir Issue
For more than two decades Ford was struggling to make profits in the business. It had just 2% of the domestic vehicle market of India which made it difficult for the company. And the situation became worse since company stopped manufacturing car units in India.
This move will provide a good opportunity to Ford Motor Company to revisit Indian customers in a new fashion. Company would get a cost benefit if it chooses to continue production in India. The company can export the cars in Europe and North America where the market for EVs is expanding every second.
Gaurav Vangaal said, “Ford will have to prove India can also be cost-competitive for making EVs, for which it will need big investments to localise the supply chain and it will also need to figure out how it would source lithium-ion batteries.”
The decision came after company analysed PIL scheme of Central Government under which it can get major incentives on production of EVs in India.
