Ford Motor Co on Thursday said that plans to make electric vehicles for export from India were dropped. It is exploring options for its two factories in the country that have stopped production. The production was stopped last year.
The US carmaker said in February it would manufacture EVs in India and also got approval for the Indian government’s $3.5-billion production-linked incentive scheme for making clean-fuel vehicles.
“After careful review, we have decided to no longer pursue EV manufacturing for exports from any of the Indian plants,” a spokesperson for Ford India said in an email to Reuters.
There were no further details from the company on its U-turn. Reuters said that the company is going ahead with its business restructuring plans.
“We continue to work closely with unions and other stakeholders to deliver an equitable and balanced plan to mitigate the impacts of restructuring,” the spokesperson added.
Talks for the sale of the Sanand plant in Gujarat with Tata Motors were progressing well, while Ford was pursuing multiple suitors for its Chennai factory, India’s Economic Times newspaper said in a report, citing people familiar with the matter.
Ford had said earlier that it was considering production of electric vehicles for export from India.
The company had less than 2% of the Indian passenger vehicle market when it stopped production in the country last year, having struggled for more than two decades to generate profits.
Several car makers are planning to make EVs in India, with the government offering billions of dollars in incentives to build EVs and their parts locally as it seeks to cut oil imports and pollution.
(With inputs from agencies)
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