ford india Archives - Shifting-Gears

Key Highlights Ford's Uncertainty: Decision delayed until late summer 2025. Chennai Plant: Focus on global markets, not immediate re-entry. Investment Needed: Significant refurbishment costs for Maraimalainagar facility. Market Potential: India remains an attractive market for Ford. Ford's much-anticipated return to the Indian market has hit a roadblock, with the US auto giant reportedly delaying its final decision until late summer 2025. The company was initially expected to unveil its detailed India strategy by January, but is now taking a step back to reassess its plans. According to sources familiar with the matter, Ford’s board discussed the issue last month and opted against making any immediate announcements. "The company is using this time to rethink its India strategy," a source revealed1. A Ford spokesperson reiterated the company’s commitment to utilizing its Chennai manufacturing plant for global markets. The reason for hesitation? Several factors are behind Ford's hesitation. The current political climate in the US prioritizes domestic manufacturing, potentially making foreign investments less attractive. Additionally, Ford would need to invest significantly to refurbish its Maraimalainagar facility, which has been idle since the company's exit from India in 2021. Industry experts estimate that converting the Chennai plant for electric vehicle (EV) production could cost anywhere between $100 million to $300 million, as major structural changes, including new welding and assembly lines, would be required. Past experience in the Indian market Ford's retreat from India in 2021 marked the end of a decades-long struggle. Despite launching popular models like the EcoSport, Figo, and Endeavour, the automaker failed to compete with market leaders such as Maruti Suzuki, Hyundai, Tata Motors, and Kia, which dominated with their budget-friendly, fuel-efficient models. With $2 billion in accumulated losses and a market share of less than 2%, Ford found it increasingly difficult to sustain operations. The collapse of its joint venture with Mahindra & Mahindra in 2020 further complicated its position, leaving the company without a local partner to help navigate the price-sensitive Indian market. While Ford ceased domestic production, it continued to support existing customers through spare parts and service networks, and it still exports vehicles from India. The company maintains that it is committed to utilizing its Chennai facility to serve global markets. However, the final decision on re-entering the Indian market remains uncertain. Also Read: Maruti Jimny 5-door is a superhit in Japan, bookings halted! Source

Tag - ford india

Ford still not sure about re-entering India?

Ford EcoSport is coming back as a bigger SUV?

Ford has no plans for mass market cars in India

Ford Ranger spotted in India, launch is not confirmed

Ford patents new MPV in India, but will they launch it?

Ford’s new SUV for India revealed via patents