Ford makes U-turn and halts plans for EV exports from India


Ford Motor Co. said Thursday it had dropped plans to manufacture electric vehicles (EVs) in India for export while it is evaluating options for its two factories in the country that halted production last year.

The US automaker announced in February it would manufacture electric vehicles in India and also received approval for the Indian government’s $3.5 billion production-linked incentive scheme for manufacturing clean-fuel vehicles.

“After careful consideration, we have decided to no longer pursue the manufacture of electric vehicles for export from any of the Indian plants,” a Ford India spokesman said in an email.

The company did not provide details of its turnaround, but added that its previously announced business restructuring will continue as planned, including the search for alternatives for its manufacturing facilities in India.

“We continue to work closely with unions and other stakeholders to create a fair and balanced plan to mitigate the impact of the restructuring,” the spokesman added.

Talks with Tata Motors to sell the Sanand plant in Gujarat are progressing well, while Ford is pursuing several prospects for its Chennai plant, according to a media report, citing people familiar with the matter.

Earlier this year, Ford said it was considering producing electric vehicles in India for export and possibly for sale in the domestic market. The company had less than 2% of India’s car market when it halted production in the country last year after struggling to turn a profit for more than two decades.

Several automakers are planning to manufacture EVs in India, with the government offering billions of dollars in incentives to build EVs and their parts locally to reduce oil imports and pollution.

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