The Indian government is giving a big boost to local manufacturing, where many big auto companies are preparing to set up their production plants in India. Ford Motor Company made an announcement in September last year that they would now set up a new plant to manufacture electric vehicles in the Indian market. However, now it has been reported that the company has dropped the EV manufacturing plan.
Ford India was one of 20 different companies that were selected under the Production Linked Incentive Scheme - PLI scheme of the Government of India announced in February 2022. It is reported that Ford India can now withdraw its application. Ford has now decided not to invest in the country.
If media reports are to be believed, Ford India has not been able to meet the value projection and internal targets in its business case. This is the main reason behind the decision to scrap the plan to develop electric vehicles in India. Ford India will sell its factories in Sanand, Gujarat and Chennai. The company has already stopped production at both the plants. We told you earlier that Tata Motors and Ford India are in talks for a plant in Gujarat. Tata is aiming to develop electric cars at this Ford plant.
According to information received last month, Indian automaker Tata is in talks to take over the plant of American auto giant Fort in India. Tata Motors is planning to invest an additional Rs 2,000 crore in the newly acquired plant. The domestic carmaker intends to manufacture two lakh electric vehicles (EVs) by 2026 at its Sanand plant. Ford also owns a vehicle and engine manufacturing plant in Maraimalai Nagar, Tamil Nadu, which is very popular in the country in terms of engine manufacturing.