The re-entry will entail new investments, a focus on electrics and sustainability and also work on production for exports, sources told 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 source said.
Ford, which had invested over $2 billion in India and tasted success with products such as Eco Sport mini-SUV and Figo small car , now believes that India will lead volumes for the global auto industry as many markets in the West stagnate. With China and Europe not being significant businesses for the company, it is 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 source said.
An indication of its re-think on India exit had come late last year when it decided to go back on a deal to sell its Chennai plant to Sajjan Jindal’s JSW (it had sold its plant in Gujarat to Tata Motors). Responding to a questionnaire, a spokesperson for Ford said, “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 source said.
Ford could not build a solid business case in the country, despite being present here for over three decades (it first set foot in India in 1995). The company did business as a solo entity and also in partnership with Mahindra & Mahindra, with whom it had joined hands when it entered the country in late nineties and thereafter around 2019. However, the JVs failed to work on both occasions.
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