Ford: Ford may produce hybrids & ICE engine parts at Chennai plant

Reuters

Ford announced that it has submitted a Letter of Intent to the Government of Tamil Nadu.

American auto major Ford may opt for a combination of electric vehicles, hybrids and internal combustion engine components as its manufacturing strategy for the Maraimalainagar plant. According to sources with knowledge of the matter, Ford is working on both EV and hybrid architecture which will spawn new affordable compact vehicles to be exported to South East Asian markets to begin with.

Sources say a top level team under Ford Motor Company CEO Jim Farley is working on new compact products both in electric vehicle as well as hybrid versions. When contacted, the Ford India spokesman said in an email response: “Further information about the type of manufacturing and other details will be disclosed in due course. We have no further updates to share at this time.”

Sources say the current volatility in EV demand has prompted a rethink at Ford. EV demand is seeing some pressure worldwide including in markets like China and South East Asia which could explain the attempt to hedge the EV risk with both hybrids and ICE vehicles. Sources also say that Ford management will take a final call on the kind of production slotted for the Chennai plant in December after the US Elections.

According to sources, Ford is looking to produce a range of vehicles which it may, at a later date, also consider bringing into India. Given the tepid appetite for electric passenger vehicles in India and the slower take off of this segment, hedging risks with hybrids and ICE models makes sense, said auto industry experts.

Last month, Ford announced its re-entry into India after top Ford officials met Tamil Nadu chief minister MK Stalin and industry minister TRB Rajaa in the US. Ford said that it would re-start work at the Chennai plant to make cars that are initially aimed for exports to global markets.

Ford announced that it has submitted a Letter of Intent to the Government of Tamil Nadu. The company’s statement at that time said, “This strategic move will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.”