 "Ford may re-enter India after 2021 exit as western markets face speed bumps")
US automobile manufacturer Ford could re-enter India after its exit in 2021 as the carmaker is set to consider a fresh proposal with a new strategy for the market.
The re-entry strategy will involve new investments, a focus on electric vehicles and sustainability, among other objectives, the Times of India reported on Saturday.
A source associated with the company told TOI that a report on the feasibility of re-entering India has been prepared and will need to be considered at the headquarters.
During its three-decade long presence in India since 1995, the US auto giant invested more than $2 billion in the country and launched many successful projects: EcoSport mini-SUV and the small car, Figo.
The proposal for re-entry is driven by the company’s hopes to tap into growth opportunities in India at a time when China and Europe are giving insufficient business to the company.
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"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.
Business Standard had reported in December 2023 that an indication of the company's reconsideration of its exit from India came late last year when it backtracked on a deal linked to selling its Chennai factory to the JSW Group.
The Chennai unit of Ford, Maraimalai Nagar factory, spans 350 acres and had an annual production capacity of approximately 200,000 vehicles and 340,000 engines.
According to S&P Global Mobility, India is expected to lead global light vehicle production with a compound annual growth rate (CAGR) of 4.6 per cent from 2023 to 2033. This growth rate will outpace China’s 1.7 per cent CAGR and the US’ 0.3 per cent CAGR during the same period, the report said.