Ford could build EVs in India

Ford is considering to resume production at its dormant Indian factory in Chennai, a city in the southern state of Tamil Nadu. Local reports suggest the American carmaker may manufacture electric cars in the country.

Image: Ford

Ford has signed a Letter Of Intent with Tamil Nadu saying it intends to utilise its Chennai plant for export production. A report from Business Standard indicates it will likely build electric vehicles there and export them to Southeast Asia. While Ford has not yet confirmed this information, it will likely restart sales in India at some point if it resumes local production.

Given the Indian government’s push for electric vehicles, it’s likely that the vehicles made in the subcontinent will be electric. A person familiar with the developments told Autocar Professional that the company might begin assembling the Everest (to sell it locally) and then launch the Mustang Mach-E as a Completely Built Unit (CBU) import. While both electric cars are likely to be too expensive for the greater bulk of the car market in India, it would allow the company to build a brand reputation.

The source added that Ford is looking at localising EV platforms in India for domestic sales and exports, hinting that this is the primary intent behind reopening the Chennai plant. In 2022, the company established a Skunkworks team in California, US, to work on a low-cost EV platform. The Autocar Professional report suggested the company could launch EVs based on this platform in India.

Officially, Ford is keeping its cards close to its chest, saying it will announce “the type of manufacturing and other details” later. The wording indicates it does not want to divulge whether it intends to build only components or entire vehicles in India if it reopens the Chennai plant. However, logic suggests that, just like rumours in the local media, it is making concerted efforts primarily to sell high-volume, locally manufactured cars in the country again.

The manufacturer stopped making cars in India in July 2022, effectively withdrawing from the market. It even owned a car plant in Sanand, an auto hub in the western state of Gujarat. Ford sold the facility to Tata Passenger Electric Mobility Limited in January 2023. The homegrown automaker started making the Tata Nexon.ev there at the beginning of the year.

ford.com, autocarpro.in, business-standard.com

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