Ford drops plans to make electric vehicles in India for global markets: Report

Ford Motor Co has axed its plans to make electric vehicles (EVs) in India for global markets and will likely pursue sale of its factories in the country, Reuters reported, citing other publication. While talks for the sale of the carmaker's Sanand plant in Gujarat with Tata Motors were progressing well, Ford was pursuing multiple other suitors for its Chennai factory, the report stated.

File photo of Ford Motor logo (REUTERS)
File photo of Ford Motor logo

Earlier this year, the company had said that it was considering producing EVs in India for export, and possibly for sale in the domestic market.

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Last year, the automaker called quits in India, announcing that it will stop manufacturing locally in the country and only sell high-end models in the country through import route. The move was announced after the brand accumulated operating losses over the 10 years of more than $2 billion. Besides this, a $0.8 billion non-operating write-down of assets in 2019 too resulted in its decision to shut down the two Indian plants in Gujarat and Chennai.

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Ford Motor's journey in India began in the 1920's when it came to the country as a subsidiary of Ford Motor Company of Canada, before exiting in the early 50's. In 1995, Ford returned to India, this time in collaboration with Indian vehicle manufacturer Mahindra and Mahindra. Ford and Mahindra had severed ties in between, and Ford became Ford Motor India Limited in 1998.

The last model launched by Ford in India is the Freestyle. Ford pitched it as a lifestyle adventure vehicle, slotting it somewhere between the Figo hatchback and the EcoSport SUV. Ford currently sells Endeavour, EcoSport, Figo, Figo Aspire and Freestyle models in India.

First Published Date: 12 May 2022, 13:51 PM IST
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