• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Ford’s Shuttered India Factories May Be Reborn in EV Push

Ford’s Shuttered India Factories May Be Reborn in EV Push

Ford factory
Cradles transport automobile bodies on the engine wedding line inside a Ford Motor Co. factory. Photo: Bloomberg.
April 12, 2022
Bloomberg

It’s been seven months since Ford decided to shut its factories in India, taking a $2 billion charge for the retreat. The decision was unsurprising: contrary to Ford’s expectation in 2012 that the nation’s burgeoning middle class would propel it to one of the company’s top three markets by 2020, its market share had slumped to less than 1.5% by the time it decided to pull the pin.

In between, Ford invested heavily in two factories near the southern and western coasts of India, manufacturing cars and SUVs for both the domestic market and export. But it racked up losses of more than $2 billion in a decade, unable to crack a price-conscious market dominated by cheap cars and two-wheelers.

Now, there could be a way to recoup at least some of those losses. The provincial government in Tamil Nadu is holding talks with Ford to explore if its factory there can be converted to a plant manufacturing and exporting electric vehicles, the Economic Times newspaper reported last week. Ford also told the newspaper it was “exploring the possibility of using a plant in India as an export base.”

That could very well turn out to be a smart move. While it’s difficult for U.S. carmaking giants to make any meaningful inroads in India — General Motors ceased sales in India five years ago — EVs could offer another opportunity to take a shot in the market of 1.4 billion people. 

That option is particularly promising given Maruti Suzuki, the local unit of Suzuki that sells one in every two cars on Indian roads, doesn’t offer a single EV. 

The market is tiny, at just 1% of total sales, but the growth is staggering. Retail sales of electric cars and SUVs jumped 324% last month, based on data compiled by the Federation of Automobile Dealers Association. That compares with a fall of 7.8% in overall sales of passenger vehicles. 

India, home to some of the world’s most-polluted cities, has vowed to turn carbon-neutral by 2070, and is taking steps to become greener. Ford is among companies selected to receive state subsidies under a production-linked plan for electric vehicles, incentivizing the carmaker to possibly return with a new avatar. 

That may hold lessons for other automakers too. GM’s factory in India has sat idle for years, with a labor union representing former workers blocking a deal to sell the plant to China’s Great Wall Motors.

Read more: EVs Are on the Way, But Can AVs Keep Up?

Ford has brought some very successful products to India — like the Figo hatchback, the EcoSport compact SUV, and the Endeavour premium SUV. But it’s difficult to compete with Maruti and South Korea’s Hyundai in the nation, where bare-bones cheap cars are traditionally chosen by an emerging middle class buying their first vehicle. 

There are signs that’s changing, especially with premium models. Mercedes-Benz plans to roll out a locally assembled EQS — the electric version of its flagship S-Class sedan — this year, while BMW is also unveiling a slew of electric products in India. Elon Musk has waged an unsuccessful campaign for the government to cut import tariffs so Tesla can enter the market. 

But Prime Minister Narendra Modi’s focus is clear. Under a program called Make-in-India, he wants automakers to set up factories in India to sell locally and export. That’s where Ford’s opportunity lies.

RELATED CONTENT

RELATED VIDEOS

Automotive
  • Related Articles

    Ford Will Stop Making Cars in India, Take $2 Billion Charge

    Women Lead Push for Rights in Bangladesh's Fashion Factories

    Ford's Engineers Side With Google in Full Autonomy Push

Bloomberg

Volvo May Move Investments to U.S. If Europe’s Green-Tech Push Falls Short

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Retailers – Quit Bellyaching and Differentiate Yourself on Returns

    Reverse Logistics
  • A Mid Adult Male Truck Driver Doing Exercises Before Road Trip by the side of a truck

    Podcast | Yoga for Truck Drivers? It’s a Mother Trucker!

    LTL/Truckload Services
  • A STORE WINDOW DISPLAYS AN ARRAY OF DESIGNER PURSES

    Can AI Turn the Tide Against Product Counterfeiters?

    Sourcing/Procurement/SRM

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing