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Ford is exploring India as a possible hub to manufacture EVs

According to a recent storey from Reuters, Ford has issued a statement describing their shift in attitude regarding production in India.

Ford Motor Company announced that it is examining the prospect of producing electric vehicles in India, barely months after the Asian country’s sales and manufacture were halted. Ford is open to the concept of reopening its sales books in India for EVs solely, in addition to pursuing EV manufacturing.

Ford India Private Ltd. was established in 1995 as a subsidiary to launch several of the brand’s most popular combustion models in India. Last September, however, Ford HQ declared the end of all sales and manufacture in India, citing global economic issues as well as a failure to keep up with Indian competition.

Despite 25 years of sales in India, Ford only had 2% of the passenger vehicle market, admitting it had lost over $2 billion in the previous ten years.

In this process, Ford and numerous other automakers are willing to forego less profitable market endeavours in order to devote more resources to electrification, which is a critical component of the automaker’s long-term strategy.

Following Ford’s recent comments, manufacturing in India may be revived as long as it is EV-focused.

According to a recent storey from Reuters, Ford has issued a statement describing their shift in attitude regarding production in India. While Ford no longer manufactures cars in the country, the company still owns two plants, one of which may be used as a “export base for EV manufacturing.”

Ford may save money by moving production to India, as it has done in the past with automobiles built in India and shipped to North America and Europe. In this way, the American automaker may refocus its export strategy to promote its expanding electric vehicle lineup.

According to the storey, resuming manufacture in India also provides the automaker with a far more direct path back into the domestic sales market, should it decide to do so. “There have been no specific discussions on this right now,” a Ford India representative said recently, “but it is not out of the scope of future possibility.”

As Ford considers producing additional electric vehicles in other nations, there are a number of obstacles to overcome. It will need to localise its supply chain and get lithium-ion EV batteries, which are a hot commodity on the worldwide market.

In the future, the American manufacturer will continue to investigate if India can become cost-competitive for electric vehicles.