Ford Motor Company said on Thursday it had withdrawn plans to make Indian electric cars for export, while looking at the ways in which two of its factories in the country had stopped production last year.
The American car manufacturer said in February it would produce EVs in India and received approval from the Indian government-related production program linked to a $ 3.5-billion refinery to produce cars that produce clean fuel. “After careful review, we have decided that we can no longer pursue EV production for export to any Indian plants,” a Ford India spokesman said in an email. The company did not provide details about its U-turn, while adding that the previously announced business restructuring was proceeding as planned, including exploring alternatives to its production facilities in India.
FORD
“We continue to work closely with unions and other stakeholders to deliver a fair and equitable plan to reduce the effects of the restructuring,” the spokesman said. Negotiations for the sale of Sanand factory in Gujarat with Tata Motors were progressing well, with Ford chasing more people to look for the Chennai industry, India’s Economic Times reported, citing people familiar with the matter.
Earlier this year, Ford said it was considering producing EVs in India for export, which could be sold on the domestic market. The company had less than 2% of the Indian passenger car market when it stopped production in the country last year, struggling for more than two decades to make a profit. A handful of car manufacturers are planning to make EVs in India, as the government is providing billions. of dollars in incentives to build EVs and their components in the area as it seeks to reduce oil purchases and pollution.
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