American automobile giant Ford could start making electric cars in India as it has secured approval under the government’s PLI scheme.
The firm is considering to start manufacturing electric vehicles. It is exploring the possibility of revamping a manufacturing unit in India from where it will export EVs globally. However, there is no confirmation on which models would be produced and whether they will be offered to the Indian market as well.
It is worth noting that Ford has a very robust EV gameplan to launch many new EVs. It has recently pledged to invest US$30 billion globally to ramp up EV production. The India plant would be used to manufacture lower-cost EVs.
Ford could make India an export-only manufacturing base as the PLI scheme allows companies to locally produce products even if they are not sold locally. However, the company need to meet localisation targets, year-on-year growth targets and other criteria.
But with an active dealer network to support customers and a five-year price freeze on spare parts and consumables, it makes sense for Ford to sell EVs in India as well. Ford has also announced that it would retain over 90% of its service network.
Will Ford India be electric only?
There have been no specific confirmation on this right now as Ford also plans to serve customers in India with iconic vehicles, including the Mustang coupe.
Hence, in the future we can expect a mix of locally made Ford electric cars and imported high-end ICE Fords in the future. This development clearly reflects that Ford has not given up on India completely and is working hard on keeping its feet in the Indian market.