Ford Motor to make electric cars in India in comeback stint, hints minister

Ford Motor could be manufacturing electric vehicles for the world using its facility in India. The US-based auto giant, which left the Indian market three years ago, is expected to come back in a new role where it will use India as a manufacturing hub for global markets. The carmaker will use its facility in Chennai, Tamil Nadu to resume production. TRB Rajaa, Industries Minister of the state, hinted that Ford is likely to manufacture EVs once work resumes. As of now, Ford Motor has not confirmed if it will launch any of its models in India when it returns.

According to Bloomberg, Rajaa said Ford is yet to decide on what it will be producing in the Chennai plant. However, the minister hinted that the carmaker could be manufacturing electric vehicles. He alluded to recent trends to say that investors who have entered Tamil Nadu in the past few years have brought EVs. “They do know the ecosystem is ripe and the discussions are also on those lines," Rajaa added.

Last month, Ford announced plans to export vehicles from its Chennai factory after sending a letter of intent to the Tamil Nadu state government. Ford had ended domestic car production in India in 2021 as its sales plummeted in the Indian markets. Within a year, Ford also halted exports from India, exiting the world's third-largest automotive market.

Despite successfully selling its vehicle manufacturing factory in Sanand, Gujarat, Ford was unable to close its vehicle and engine production operations in Chennai by the targeted deadline. According to a company statement last month, Ford now employs 12,000 people in Tamil Nadu for worldwide business activities, with that number likely to increase by up to 3,000 over the next three years.

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Carmakers keen to use Tamil Nadu as EV manufacturing hub?

Ford could be the latest in the list of carmakers who are eager to setup EV manufacturing facility in the state. Indian auto giant Tata Motors has recently announced its investment into Tamil Nadu in the form of a ₹9,000 crore EV manufacturing plant. The company says it will produce 2.5 lakh vehicles annually at full operating capacity.

Vietnamese EV manufacturer VinFast has announced its plans for an integrated electrical vehicle plant in the southern state, and it has signed a memorandum of understanding with the Tamil Nadu government. The manufacturer has stated that it will make an initial investment of $200 million ( ₹1,640 crore).

India is preparing to increase EV manufacturing in the world's most populous country and is attempting to create incentives to attract major players. To this end, the federal government reduced import duties for international automakers that agreed to invest $500 million in the country. Tamil Nadu has garnered visibility by promoting itself as the EV production hub of the country.

Check out Upcoming EV Cars in India.