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Ford withdraws India EV manufacturing plans

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Earlier, Ford was picked up among 20 carmakers under the Champion OEM Incentive Scheme, a part of the PLI scheme

Ford Motor Company has decided not to go ahead with its plans of manufacturing electric vehicles in India just months after its application for Production Linked Incentive (PLI) was approved by the Indian government.

The US brand intended to make electric vehicle from one of its plants in Gujarat and Chennai but has now decided against it.

After careful review, we have 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 a Ford India spokesperson.

Ford was picked to be among 20 carmakers under the Champion OEM Incentive Scheme – a part of the PLI scheme having a budgetary outlay of nearly ₹26,000 crore.

Industry sources stated that Ford has been in dialouge with automakers for putting both its plants to use. Tata Motors and MG Motor India are believed to have been held discussion with the Ford.

“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,” the spokesperson added.

Little over eight months ago, Ford said, it will discontinue making cars in India and will explore solutions for both of its plants. The company’s exit follows the exit of General Motors a few years ago.

Published on May 12, 2022

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