After re-entry, Ford to exit India again

Wednesday 18th May 2022 06:44 EDT

Ford Motors did a U-turn in only three months, announcing that it’s giving up on EV manufacturing in India (for exports), despite making the cut for benefits under the government’s production-linked incentive (PLI) scheme. It is believed that the company is close to securing deals to sell its India factories - the first one at Chennai in Tamil Nadu and the second one at Sanand in Gujarat. Tata Motors is believed to be close to acquiring the Gujarat plant, while talks are on with a clutch of companies for Chennai, sources said.
The company, which in February this year showed willingness to re-enter India, after originally pulling out around the middle of 2021 (when it failed to secure a JV with Mahindra & Mahindra), is understood to have informed its workers about the latest decision.
Ford in India official said, “After careful review, we have decided to no longer pursue EV manufacturing for exports from any of the Indian plants. We remain grateful to the (Indian) government for approving our proposal under the production-linked incentives and for being supportive while we continued our exploration.” The company said as of now, its previously announced “business restructuring continues as planned, including exploring other alternatives for our manufacturing facilities. ”

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