After exiting the Indian market, Ford is reportedly planning to re-enter – This time with EVs and Hybrids
Global automotive juggernaut, Ford, is contemplating its plans to position itself as a car manufacturer in India. In a rather long see-saw session, there have been multiple speculations around Ford’s upcoming strategy for the Indian market. Latest reports suggest Ford could stick to Hybrids and EVs along with a probable JV with Tata Motors.
Ford India Strategy Could Revolve Around Hybrids, EVs
After years of dwindling sales, Ford pulled the plug on its Indian operations, similar to what automotive juggernauts like Chevrolet from General Motors and Fiat from Stellantis (then Fiat Chrysler Association) did. Company held two manufacturing facilities in India – Sanand and Chennai.
Sanand plant was sold to Tata Motors and the transaction happened rather smoothly and ownership was handed over. However, same can’t be said about Ford’s Chennai plant. Ford was in the final round of talks with JSW Group for the sale of its Chennai plant and was called off in the final stages.
The deal with JSW Group was said to be almost finalised and considered a closed chapter. However, this deal went south and Chennai facility is still under Ford’s ownership. The hesitation for Ford follows with the recent success of Indian automotive sector climbing the ranks to solidify third largest car market position, followed by China and USA.
What may be Ford’s strategy?
The Chennai plant may prove to be a strategic export hub for ASEAN nations with proximity to ports and sea routes. As per a recent report, people in the know-how have revealed that Ford might retain the manufacturing facility to sell hybrid and electric vehicles along with SUVs.
These adhere to Ford’s global strategies and the brand has significant expertise and pioneering in said genres. Ford’s recent patent applications reveal a compact or sub-compact SUV that could take EcoSport name considering its legacy, loyalty and recall among enthusiasts. This might be Ford’s mass market offering while keeping halo products in the line.
Speaking of, Ford Mustang EV name was trademarked in India earlier this year and new Ford Everest (sold as Endeavour in India) design patents have been filed too. These developments align with the recent report mentioning Ford may stick to SUVs and EVs, while the smaller SUV could be a hybrid vehicle.
Ford JV with Tata Motors?
The report also mentioned speculations about Ford getting into a JV with Tata Motors. Tata is currently India’s leading electric car maker on a scale larger than any other manufacturer. A JV with Tata may benefit both companies. For Ford it will help penetrate the Indian market while for Tata, they might get to launch cars in the US market.
Source
Source: Electric - rushlane.com
