CHENNAI: Is there a question mark hanging over Ford’s return to India? The American auto major, sources said, was supposed to release detailed plans of its fresh India strategy by Jan but is now reportedly doing a rethink.
According to sources with direct knowledge of the matter, the company is currently reconsidering its India plans and will announce its final decision only in late summer. “The company’s board discussed the matter in Jan and has decided not to make any announcements right now,” said a source. “There is definitely a delay and the company is using the time to do a rethink of its India strategy.”
When contacted through email, the Ford spokesman replied that the company remains “committed to utilising the manufacturing capabilities in Chennai to serve global markets and are thankful to the govt of Tamil Nadu for its continued support as we advance our plans. 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.”
Sources said several factors are responsible for Ford slowing down its India return plans. For one, the political climate in the US right now is less amenable towards foreign investments and more focussed on bringing automotive manufacturing back to America. Also, Ford will need to line up significant investments to make its nearly three decade-old Maraimalainagar plant operation worthy again.
Auto industry experts said if Ford decides to re-engineer the Chennai plant for EVs, it will cost anywhere between $100 to $300 million, given that the weld and assembly lines will need to be redone.