A few months after Ford stopped selling and manufacturing cars in India, the company is now considering producing EVs in India for export.
This shift in strategy is interesting. Back in September, Ford noted they did not see a path to profitability in India.
In an interesting twist, Ford was among 20 automakers named this morning eligible to receive incentives under the Indian Government’s clean fuel initiative.
This may be a way for the North American automaker to break back into the Indian market.
Currently, Ford has two auto plants in India but neither are in operation at the moment. However, the company is now exploring using a plant in India as an export base.
However, Ford will need to invest in the local Indian supply chain to make this export opportunity profitable. Indian labour costs are less, but Ford will need to establish a well-connected supply chain for EV specific materials. As well, Ford will need to establish the logistics around moving the vehicle from the plant to market.
In addition, Ford will need to find a source for lithium-ion batteries to supply the factory to produce fully operational EVs in the country.
As per Ford comments, there are no specific discussions on Ford selling EVs in India. However, it is not out of the realm of the possible.