Saturday, March 2, 2024

Ford May Return To India As EV Maker

Ford India Could Return By Help Of Govt PLI Scheme

Ford may be able to domestically manufacture EVs at one of its Indian factories if the government’s PLI incentive programme is approved. Only six months after Ford India shut down local production, we now have word that the American automaker has been granted clearance under the government’s PLI plan to restart production.

Kapil Sharma, Ford India’s head of communications, stated to Autocar India that the company is considering reviving operations by producing electric vehicles, adding, “We thank the Government of India for approving Ford’s proposal under the PLI scheme for the automobile sector. As Ford leads customers through the global electric vehicle revolution, we’re exploring the possibility of using a plant in India as an export base for EV manufacturing.”

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What We Know So Far ?

Ford India Could Return By Help Of Govt PLI Scheme

Ford is being tight-lipped for the time being and has no additional facts to provide; the firm must now chose one of its two sites to preserve. Both factories would need retooling and other substantial upgrades to support EV production after previously producing exclusively internal-combustion engine (ICE) versions. As a result, the choice will be based on which of the two is more suited to the needed retooling. Another thing to consider is which factory has the most chance of being sold, as Ford has declared that it cannot maintain both plants functioning and is trying to sell one of them. As a result, the company has a lot of figuring out to do on this front.

Which things will be manufactured here is another something that has to be sorted out. Ford would not want to relocate manufacture of an existing car from an established line, and moreover, the business has a very comprehensive EV gameplan that includes several new EVs, so it will very certainly be a brand-new model. The business has announced a $30 billion global commitment to develop all-new hybrid and fully electric automobiles. The India factory would very certainly be utilised to produce lower-cost EVs, taking advantage of India’s low cost structure. If any of this materialises, it won’t be anytime soon, given the plant’s considerable retooling requirements and the fact that this will very surely be a whole new model.

Ford India May Be EV Only

Ford might turn India into an export-only production base, according to the company’s statement. Companies can create items locally even if they aren’t marketed here under the Government’s PLI plan, as long as they achieve localization goals, year-over-year growth goals, and a few other conditions. With an active dealer network, Ford continuing to serve consumers with a five-year price freeze on spare parts and consumables, and also declaring that it will keep over 90% of its service network, selling these made-in-India EVs locally makes sense. Furthermore, the PLI plan requires a high level of localization, making these lower-segment EVs extremely viable for the Indian market.

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