The re-entry will entail new investments, a deal with electrics and sustainability and likewise work on manufacturing for exports, sources instructed TOI. “A report on the feasibility of re-entering India and the growth potential of the market has been prepared.This will now be considered by the global team at Ford’s headquarters. We expect a positive response,” a supply mentioned.
Ford, which had invested over $2 billion in India and tasted success with merchandise reminiscent of Eco Sport mini-SUV and Figo small automobile , now believes that India will lead volumes for the worldwide auto business as many markets within the West stagnate. With China and Europe not being vital companies for the corporate, it’s pinning hopes on India. “Feeling is that it is not right to stay out of India, especially as the brand is still well-known to potential buyers,” the supply mentioned.
An indication of its re-think on India exit had come late final 12 months when it determined to return on a deal to promote its Chennai plant to Sajjan Jindal’s JSW (it had bought its plant in Gujarat to Tata Motors). Responding to a questionnaire, a spokesperson for Ford mentioned, “We continue to explore suitable alternatives for the Chennai plant and have no further information to share.”
“If a re-entry into India is approved, Ford may still take around one year to start production at the Chennai factory. There will be a lot of work that needs to be done, both on the legal side as well as making the plant and machinery fit for making cars again,” the supply mentioned.
Ford couldn’t construct a strong enterprise case within the nation, regardless of being current right here for over three many years (it first set foot in India in 1995). The firm did enterprise as a solo entity and likewise in partnership with Mahindra & Mahindra, with whom it had joined palms when it entered the nation in late nineties and thereafter round 2019. However, the JVs failed to work on each events.
