Ford Drops Plans to Produce EVs in India for Exports

Ford Motor Co announced its plans to drop manufacturing electric vehicles (EVs) in India for export while the automaker explores options for its two manufacturing facilities in the country, which stopped production last year. 

The carmaker announced its plans to manufacture EVs in India in February this year after getting approval for the Government of India’s $3.5 billion production-linked incentive (PLI) scheme to produce clean-value vehicles. 

Ford did not disclose other details and said that its previously announced restructuring will continue as planned, along with exploring alternatives for its manufacturing facilities in India.

According to a report in India’s Economic Times newspaper, the company is in talks with Tata Motors for the sale of the Sanand plant in Gujarat and is also pursuing multiple suitors for its Chennai factory. 

Earlier this year, the automaker has said that it plans to produce EVs in India for exports and for sale in the domestic market. Many other carmakers are also planning to produce EVs in India, with the Government of India providing billions of incentives to manufacture EVs and their parts locally as it plans to cut oil imports and pollution.