Ford abandons plan to manufacture electric vehicles in India

Automobile giant Ford has abandoned its plans to manufacture electric vehicles from Indian plants in Maraimalai Nagar near Chennai and Sanand in Gujarat. A statement revealing the change in earlier plans in India said the decision was taken after a “careful review.”

The statement said the company had decided to no longer pursue EV manufacturing for exports from any of the Indian plants. “We remain grateful to the Government for approving our proposal under the Production-Linked Incentives and for being supportive while we continued our exploration,” said the statement.

After the American car manufacturer had announced their decision to stop operations in India in September 2021, the company said it was working on the business restructuring and continued to explore possible alternatives for its manufacturing facilities, especially the production-linked incentives scheme to utilise one of the plants as a potential EV manufacturing base.

“Ford India’s previously-announced business restructuring continues as planned, including exploring other alternatives for our manufacturing facilities. We continue to work closely with unions and other stakeholders to deliver an equitable and balanced plan to mitigate the impacts of restructuring,” said the statement.

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