Ford Calls Off EV Manufacturing Plans in India, Opts Out Of PLI Scheme

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Ford was one of the automakers selected for the auto production-linked incentive (PLI) scheme by the Centre

US automaker Ford’s plans to manufacture electric vehicles in India have been called off, a company statement recently announced. Notably, Ford was one of the automakers selected for the auto production-linked incentive (PLI) scheme by the Centre.

“After careful review, we have decided to 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 PLI and for being supportive while we continued our exploration. 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 company said in a statement.

Last year, Ford India had announced the shutdown of its manufacturing units at Maraimalai Nagar in Tamil Nadu and Sanand in Gujarat. The state government was in talks with Tata Motors and also Ford India later for EVs.

Ford’s application, selected under the PLI scheme, was among the 20 other automakers that the Ministry of Heavy Industries had shortlisted under its Champion OEM scheme. The Centre is giving incentives worth Rs 45,016 crore to attract automakers to increase their manufacturing in India.

At that time, the company said it was exploring the possibility of using one of its plants in India to produce electric cars for exports.

The decision of Ford to opt out of EV production in India has cast doubt on the future of workers at the company’s now-shut Chennai plant.

Tamil Nadu was betting big on EVs, with the state even extending its talks with players like Tesla. In October and December, Tamil Nadu Chief Minister M K Stalin had held a couple of rounds of talks with key Tata Motors officials, including Group Chairman N Chandrasekaran and Executive Director Girish Wagh.

Last year, the company said it would stop manufacturing vehicles in India but retain the engine-making and technology services business (Global Business Services) as part of restructuring its India operations. Approximately 4,000 employees are expected to be affected by this.

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