Ford Motor Company (NYSE:F), which announced the closing of manufacturing operations in India in September, is now rethinking the decision.
What Happened: Ford is mulling production of EVs in India, Reuters reported, citing a statement from the company. Ford is also considering having India as an export base for EV manufacturing.
The U.S. automaker also did not rule out the possibility of selling EVs in India, Reuters said, citing a Ford India spokesperson.
Ford will evaluate the cost-effectiveness of setting up its EV manufacturing base in India, the report said. This would mean the company may have to invest heavily in localizing the supply chain, it added.
In another development, the Indian government announced 20 companies, including Ford, will be eligible to avail incentives under the country's $3.5 billion scheme to promote clean-energy vehicles, local media reported.
The scheme is part of the government's efforts to cut down on oil imports and pollution.
Related Link: Ford Poaches Another Tesla Executive To Further Its EV Ambitions
Why It's Important: Ford's India EV plans come at a time when EV leader and pioneer Tesla Inc (NASDAQ:TSLA) has received repeated snubs from the Indian government over requests for export duty reduction.
With the prevailing import duty, Tesla's cars will be beyond the reach of Indian customers.
While the Indian government is fixated on localizing manufacturing, Tesla CEO Elon Musk is adamant on first experimenting with imported vehicles before making a call on local manufacturing.
Ford's India EV plans should augur well for the company, given it has laid out an ambitious EV transitioning strategy. The company has earmarked an investment of more than $30 billion for electrification by 2025.
F Price Action: Ford shares were up 0.97% at $18.25 Friday morning at publication
Related Link: Ford Reportedly Plans to Cut Or Suspend Production At 8 Plants
Photo: Courtesy Ford
