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Ford Motor, the American automotive giant, is set to make a comeback in India, focusing on electric vehicle (EV) production. After exiting the Indian market in 2021 due to declining sales, the company is now planning to utilize its Chennai facility to manufacture EVs for global markets. This strategic move positions India as a key manufacturing hub for Ford's EV ambitions.
The Tamil Nadu government, through its Industries Minister TRB Rajaa, has hinted at Ford's potential EV production plans. While Ford has not confirmed specific models or a timeline for its Indian return, the minister's statements suggest the company is actively considering utilizing the Chennai facility for EV manufacturing. This aligns with the growing trend of automakers establishing EV manufacturing facilities in India, driven by the government's ambitious goal of becoming a global EV leader.
This announcement marks a significant shift for Ford in India. The company's previous focus on domestic sales proved unsuccessful, leading to its withdrawal in 2021. However, the current focus on EV production for global markets reflects a change in strategy, capitalizing on the global demand for EVs and India's emerging status as an EV manufacturing hub. This move not only benefits Ford, but also solidifies India's position as a key player in the global automotive landscape.
Beyond Ford, other automakers are recognizing the potential of Tamil Nadu as an EV manufacturing hub. Tata Motors, a leading Indian automotive company, has already invested ₹9,000 crore in an EV manufacturing plant in Tamil Nadu. The plant, upon completion, will have an annual production capacity of 2.5 lakh vehicles. Vietnamese EV manufacturer VinFast has also signed a Memorandum of Understanding with the Tamil Nadu government to build an integrated EV plant, signifying the state's attractiveness to international players.
India's proactive policies, such as reduced import duties for international automakers investing in EV manufacturing, have played a crucial role in attracting investment. The government's focus on promoting EV adoption has created a conducive environment for automakers to establish manufacturing facilities. Tamil Nadu, in particular, has positioned itself as a frontrunner in EV production, offering a robust ecosystem and skilled workforce to support the growing EV industry.
Source: Ford Motor to make electric cars in India in comeback stint, hints minister