Ford will capitalize on its strengths in the US market when it returns to India. Ford is a prominent force in the global SUV (sports utility vehicle) market, with hybrid and electric powertrains emerging as key areas of focus. It intends to carry out its worldwide approach in India as well,” an individual with information on the development stated. It has also been discovered that the company might have submitted an Indian patent application for the EcoSport, which was formerly the best-selling SUV.
In an effort to strengthen its position in India, Ford Motor might be eager to work with a regional manufacturing partner. According to insiders, the car major and the Tata Group are discussing the possibility of a joint venture in this regard. “As the market leader in the EV segment, Tata will be Ford’s first choice,” a senior automotive industry executive stated. But he made it clear that the return to India would not depend on the Tatas-led JV coming to fruition. Another industry insider stated, “The company is very clear that it wants to be in the Indian market, so it will go ahead with its plans whether or not there is a JV partner.”
Ford’s future plans in India
Ford intends to utilize its local factory in India as an export center for the Asia Pacific area due to its proximity to the port and good logistical location. “The company’s export hub for the APAC region will be the Maraimalar Nagar plant, which is located in Chennai,” one of the previously mentioned sources stated. Recall that Ford terminated its contract with JSW to purchase the Chennai facility in December 2023, even though the sale was deemed finalized, and Tata Motors purchased their India’s Gujarat plant.
If the joint venture succeeds, it might allow the Indian automotive behemoth to enter the US EV market. According to sources, Jim Farley, the CEO of the company, is expected to travel to India in September in order to finalize and carry out the company’s updated plans to re-enter the Indian market.
When approached, Tata Motors stated, “As a policy and practice we do not comment on market rumors,” while Ford Motor stated it would not comment on unfounded rumors. Ford made the decision to end operations in India in September 2021, citing reasons such as unprofitable operations and increasing losses. Even while there were discussions of returning to India a year later, the untenable market conditions—especially for EVs—quickly put an end to those intentions.
