Ford electric vehicle division
Ford has hinted at starting an EV division of its company, the company would manufacture electric vehicles in India. These models would then be used for export, and possibly for the domestic market as well. Ford had halted the production of its vehicles in India. This comes as a change of strategy after not being profitable in the Indian auto industry.
Ford EV India ecosystem
This came in as a setback to Indian PM Narendra Modi’s – “Make in India” campaign. Ford currently has two plants in India. The company hinted that they could possibly use that as an EV manufacturing unit to export its vehicles. A company official also revealed that Ford EV could consider selling electric vehicles in the country. Ford’s move is towards a global electric revolution. The company earlier revealed it wishes to invest $30 billion in the EV ecosystem.
This is an opportunity for the American giant to re-enter the Indian market. India will prove to be cost-efficient to export electric vehicles to North American and European markets. The company will also have to localize components in order to make their vehicles budget-friendly. Also, the sourcing of lithium-ion batteries will be a primary concern for Ford.
Government of India proposal
The government of India approved Ford’s proposal to seek incentives of $3.5 billion for clean-fuel vehicles. The initiative is a crucial scheme under PM Modi’s agenda to cut oil imports and be eco-friendly. Ford is among 20 other companies who stand eligible to take the benefits of the scheme. The government promises benefits of up to 18% of new investments by companies that use cleaner fuels.
Ford plans to have 40% of its vehicles electric by 2030. India could act as an export base to achieve these figures. India could prove to provide a cost-effective manufacturing facility under the PLI scheme. Ford will also look to sell their electric vehicles in India as part of its global electric strategy.