Ford To Re-enter India For The Third Time

Global auto giant, Ford Motor Company is planning its third entry into India. According to Autocar India, “Barely two years since Ford shuttered its Indian operations, the U.S. car maker is plotting a comeback and is evaluating multiple options.” Kay Hart, the head of Ford Motor Company’s International Market Group visited India in March to “assess its entry plans”.  Interestingly, it will be the third time the U.S. auto giant will be entering India. It had set up shop in 1926 as a subsidiary of the Ford Motor Company of Canada. But, the Indian company had to be liquidated in May 1953 as a result of severe import restrictions. Then post liberalisation, it entered India for the second time in 1995 as a 50:50 partner with Mahindra & Mahindra and set up a plant in Tamil Nadu. But this JV did not work so the U.S. company hiked its stake to 72% and renamed the company to Ford India Pvt Ltd. Over a period of time Mahindras exited the JV. But somehow it was not able to make inroads into the Indian passenger car market the way Hyundai did with Santro. So nearly after 25 years, Ford once again chose to exit the Indian market in 2021 as it failed to keep up with the competition vis a vis the whole operations was proving to be unviable. Fortunately, the company which had put its TN plant on block at the last moment decided against it. Now, this plant will be cranked up to produce both ICE and EV products. Ford officials have already met the Tamil Nadu government officials with their detailed plans.