Ford’s India Return Delayed, Says Report: American Automaker Clarifies!
‘Ford is coming back to India’- we have long heard this. Rumours and anticipations about the American manufacturer’s India return have been in the air for over a year now. Now, fresh details have emerged and the same could be slightly disappointing for those who are waiting for the re-entry. Knowledgeable sources confirm that Ford is now rethinking the India-entry plans.
The manufacturer was originally supposed to release its detailed plans of its India strategy by January. However, now it seems like they are reconsidering the same and will only announce the final decision in late summer. “The company’s board discussed the matter in January and decided not to make any announcements right now. There is definitely a delay, and the company is using the time to do a rethink of its India strategy.” a senior source with direct knowledge of the matter reportedly told a media house.
Ford Refutes!
Autocar India reports that Ford India told them that these reports are baseless and the India-entry plans are still advancing. “We remain committed to utilising the manufacturing capabilities in Chennai to serve global markets and are thankful to the Government of Tamil Nadu for its continued support as we advance our plans.”
Ford, however, did not give out a timeline as to when it would begin manufacturing in India. It reportedly said “Further details regarding the type of manufacturing, timelines and other specifics will be shared in due course, and we have nothing additional to share at this time.”
Why Is Ford Delaying Its India Return?
Well, there are as many reasons to shy away from the India return as there are, to go for it. First and most important, is the current political climate in the US. With Trump rising to power, the US has announced major financial policies and reworks. Remember us tell you how Harley Davidson motorcycles are to get cheaper in India?
Donald Trump is trying to make life easier for auto giants in ‘high tariff countries’ like India, and more importantly, to bring automotive manufacturing back to America. Thus, the current political setup is less amenable to foreign investments- at least for the auto sector.
For Ford to make an India return, local manufacturing will be of key significance. The new generation Endeavour and Ranger pickups are said to be two ‘almost confirmed’ products for Ford India’s next innings. Making these at the Chennai facility will be relatively easy as the plant used to produce Endeavours in the past and the new vehicle (Everest) shares a lot of its key components with the one that was on sale here.
The challenge, however, is the proposed EV lineup. Ford plans to launch many of its global EVs in India- the Mustang Mach.e to quote an example. Only local manufacturing will allow the carmaker to price these competitively. There will be a strong focus on their exports as well.
For this, however, Ford will first need to modify and improve the Chennai plant significantly! The three-decade-old Maraimalainagar plant will need to be re-engineered and fitted with new weld and assembly lines that would suit EV manufacturing. This could cost anywhere between $100 and $300 million- a huge financial commitment which the company is still thinking over!
Ford’s India Return: The Back Story
Confirming previous rumours of its India-return, Ford submitted a Letter of Intent to the Tamil Nadu Government in September last year. The company confirmed its intention to use the Maraimalainagar plant for manufacturing for exports. The letter talked about “our (Ford’s) ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”
Back then, some sources reportedly said that Ford might freeze its India plans sooner or later, due to the ongoing turmoil in the EV market. Ford India, however, responded to these saying that the government sources would take a final call about its India plans in December.