Ford Motor Company is evaluating a return to the Indian market, just two years after its departure in 2021. A renewed strategy, emphasizing major investments and a commitment to electric vehicles and sustainability, has been proposed. This initiative, led by CEO Jim Farley, is currently under review by Ford’s global team.
Sources reveal that a comprehensive feasibility report on India’s market growth potential is now under consideration at Ford’s headquarters. “We expect a positive response,” a source indicated to the Times of India.
Ford’s prior investment of over $2 billion in India saw success with models like the EcoSport mini-SUV and Figo small car. With many Western markets facing stagnation, Ford now views India as pivotal for future growth.
Limited success in China and Europe has led Ford to set its sights on India. “Feeling is that it is not right to stay out of India, especially as the brand is still well-known to potential buyers,” the source added.
Signs of this shift emerged last year when Ford reversed its decision to sell its Chennai plant to Sajjan Jindal’s JSW, although it did sell its Gujarat plant to Tata Motors. A Ford spokesperson commented, “We continue to explore suitable alternatives for the Chennai plant and have no further information to share.”
Should Ford approve this re-entry, production at the Chennai factory might take up to a year to commence. There will be a lot of work that needs to be done, both on the legal side as well as making the plant and machinery fit for making cars again,” the source noted.
Ford’s journey in India has seen challenges. Despite its initial entry in 1995 and subsequent partnerships with Mahindra & Mahindra in the late 1990s and again around 2019, establishing a robust business case proved difficult. Both joint ventures with Mahindra fell short of expectations.
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