A report on feasibility of re-entering India will be considered by global team at Ford's headquarters and the possible re-entry will call for new investments, focus on electrics and sustainability.
The brand's recognition among potential buyers also plays a crucial role. If approved, it may take around a year to start production at the Chennai factory. Despite being present in India for over three decades, Ford previously struggled to build a solid business case here.
Ford faced several challenges during its previous operations in India. Despite investing over $2 billion in India, Ford struggled to gain significant market share. After 25 years of operations, they held only 2% of the market.
Earlier joint ventures with Mahindra & Mahindra did not meet Ford’s expectations. These partnerships failed to establish a stable business, leading to Ford’s decision to sell its Gujarat plant to Tata Motors and consider exiting the Indian marke.
Ford grappled with a dated product lineup and stiff market competetion, hindering its ability to sustain operations in India.
Now, as Ford considers re-entering India with a focus on electric vehicles and sustainability, it aims to overcome these challenges and tap into the country’s growth potential.
Ford's Global Strategy for Electric Vehicles
Ford’s global strategy for electric vehicles is ambitious and comprehensive. The auto major is investing $22 billion in electrification through 2025. This substantial commitment aims to lead electrification in areas of strength.The company is electrifying its most iconic products, including the 'Mustang'. The all-electric Mustang Mach-E, which delivers the 0-60 mph hrills Mustang is famous for, along with cutting-edge technology and over-the-air Ford Power-Up software updates. The F-150 Lightning, an all-electric version of America’s best-selling truck, combining innovation, technologies, and capabilities. The E-Transit, an all-electric version of America’s best-selling van, designed for smart and connected fleet operations.
Potential Partnership with Tata Motors
According to few of the auto news portals, Ford is exploring a potential partnership with Tata Motors to re-enter the Indian market, this time with a focus on electric vehicles (EVs). Notably, Ford and Tata have a storied past. In 1998, Tata launched India’s first indigenous car, the Indica, but it faced challenges. Later, Tata acquired Jaguar-Land Rover (JLR) from Ford, turning it profitable.Partnering with Tata, a leader in the EV segment, could accelerate Ford’s re-entry. The PLI scheme for local EV production adds to the appeal.
Ford exited India in 2021 but now seeks to return. The recent sale of its Sanand, Gujarat plant to Tata Motors hints at collaboration. Ford aims to develop new products, hybrid powertrains, and EVs in India.
Advertisements