NEW DELHI (Diya TV) — Global auto giant Ford Motor is gearing up for a return to the Indian market, focusing on hybrid and electric vehicles, according to sources. The company is eyeing its manufacturing facility in Chennai for producing these cars, signaling a strategic shift in response to the growing demand for eco-friendly automobiles.
Amidst a recalibration of its electric vehicle strategy, Ford is adapting to market dynamics where EV sales have slowed due to high prices and inadequate charging infrastructure. The automaker is taking steps to enhance the appeal of electric vehicles, including slashing production and prices of its battery-powered Mustang Mach-E while boosting output of gas-electric hybrid models.
Recent reports indicate a temporary halt in shipments of Ford’s F-150 Lightning plug-in pickup due to quality concerns, underscoring the challenges in the EV market. However, the company remains committed to ensuring high standards and plans to resume deliveries after thorough quality checks.
The resurgence of interest in electric vehicles aligns with projections for the Indian market, which anticipates significant growth in EV sales. A recent report forecasts a Compound Annual Growth Rate (CAGR) of 35 percent, with annual volumes expected to reach 27.2 million units by 2032. The central government’s initiatives, including the USD 3.5-billion Production-Linked Incentive (PLI) scheme, further underscore the commitment to fostering an indigenous EV ecosystem.
In line with its global strategy under CEO Jim Farley, Ford aims to capitalize on the evolving automotive landscape by prioritizing electrification and digital transformation. The potential comeback to India signifies Ford’s determination to leverage emerging opportunities in the hybrid and electric vehicle segment while aligning with the country’s sustainable mobility goals.
As Ford prepares for its reentry into India, discussions are underway regarding possible collaborations with local manufacturing partners. The company’s Chennai plant, with its substantial manufacturing capacity, stands poised to play a pivotal role in realizing Ford’s vision for a greener automotive future in the Indian market.
