Ford India EV
Production at Ford’s Chennai plant

Despite government willing to offer production-linked incentives Ford India abandons Indian EV plans

It seems Ford wants to just get rid of all major operations in India as it has now abandoned its EV plans as well. This despite the central government willing to offer production-linked incentives.

Ford made its exit from the Indian market back in September 2021 citing mounting losses accumulated in the last 10 years of operations.

While it’s in the process of selling its Sanand plant to Tata with the latter also willing to retain all the existing employees, Ford revived hope by disclosing its plans of transforming the Chennai plant into its EV manufacturing hub for both the global as well as the domestic market.

But, today, all of a sudden, the Chennai plant employees have been reportedly informed that all such EV plans have been shelved, indirectly telling them to be ready for any major announcement in the coming days.

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Ford’s spokesperson has also reportedly confirmed the same stating that Ford remains grateful to the government for approving its proposal under the production-linked incentives scheme but is no longer into exploring the EV space.

The American maker is currently pursuing multiple suitors for its Chennai factory. Ford had reportedly taken the decision owing to the upcoming heavy competition in the EV space from Tata, Hyundai, Kia, and MG.

In spite of abandoning its last plans for India, Ford will continue selling its high-end models – Mustang and Mustang Mach-E electric SUV through CKD and CBU routes.

The existing owners of the Figo, EcoSport, Aspire, Freestyle, and Endeavour will get service and spare parts support at least for the next few years at its service centers in Chennai, Sanand, New Delhi, Mumbai, and Kolkata.