Ford decides to drop its plan to make electric vehicles in India — Quartz India

US auto main Ford has made a U-turn on its electrical car (EVs) plan for India.

After exiting the Indian market in September 2021, it had made a shock re-entry, being chosen for prime minister Narendra Modi’s particular incentives programme to fabricate EVs.

Yesterday (May 12), nevertheless, got here the announcement that it’ll “no longer pursue EV manufacturing for exports from any of the Indian plants.”

“We remain grateful to the government for approving our proposal under the Production-Linked Incentives and for being supportive while we continued our exploration,” a Ford spokesperson advised Reuters.

Amid rising uncertainty round Tesla’s India debut, Ford’s determination could come as a setback to the nation’s nascent EV trade. All the extra so after latest incidents of hearth accidents involving electrical two-wheelers have made potential prospects within the nation jittery in regards to the section.

Why did Ford determine to drop its EV plans?

Earlier, whereas leaving India, Ford has stated it would restructure its India operations. Applying for the federal government’s incentive scheme was part of the revamp “…which allowed us to explore utilising one of the plants as a potential EV manufacturing base,” Ford’s spokesperson stated.

“Ford India’s previously announced business restructuring continues as planned, including exploring other alternatives for our manufacturing facilities. 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.

The firm now plans to renew compensation talks with its shocked employees.

Ford’s India unit has two crops within the nation—one in Gujarat’s Sanand and the opposite one in Chennai, Tamil Nadu. The firm is reportedly promoting them each.

Tata Motors is eyeing the Sanand plant, whereas a number of firms, together with Softbank-backed Ola, are in talks with Ford for Chennai, based on Reuters.

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