Ford's return to India - New Everest could be the start | Deep Drive Podcast Ep.4 | Autocar India

Autocar India2 minutes read

Ford faced challenges with its partnership with Mahindra in India, leading to non-compliant products and the sale of the Sanand plant to Tata Motors. Despite these setbacks, Ford plans to reintroduce the Endeavor as the Everest, focusing on EVs and potentially entering the market with the Ranger pickup for a fun driving experience.

Insights

  • Ford's failed partnership with Mahindra led to non-compliant products due to emission regulation changes, impacting their presence in India significantly.
  • Ford's strategic decisions post-exit from India, like retaining the Chennai plant for potential future products and focusing on EVs with affordable architecture, showcase a calculated approach towards re-entering the market emphasizing competitiveness and sustainability.

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Recent questions

  • Why did Ford leave India?

    Failed partnership with Mahindra, non-compliant products.

  • What are Ford's future plans for India?

    Reintroduce Endeavor as Everest, focus on EVs.

  • What is the status of Ford's Chennai plant?

    On "warm idle" status for future products.

  • How does Ford plan to reduce costs for EVs in India?

    Working on affordable EV architecture through Skunk Works.

  • What influenced Ford's potential return to India?

    CEO's personal connection to India, support for orphanage.

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Summary

00:00

Ford's India Exit and Future Plans

  • Ford never wanted to leave India, heavily relying on Mahindra, but a failed partnership forced them out.
  • The failed partnership with Mahindra led to non-compliant products due to emission regulation changes.
  • Ford had planned to use Mahindra's 1.2 engine for small capacity engines, but the partnership fell through.
  • Issues arose between Ford and Mahindra due to trust issues and unrealistic scenarios for product sharing.
  • Ford sold off the Sanand plant to Tata Motors, a costly investment that didn't align with market potential.
  • Ford kept the Chennai plant, rejecting offers from JSW and VinFast, potentially for future exports and domestic products.
  • The Chennai plant is on a "warm idle" status, ready for future products, possibly including the Endeavor and Ranger.
  • Ford plans to bring back the Endeavor as the Everest, with the trademark issues resolved.
  • The Everest could be imported initially due to plant operational timelines, offering competitive pricing against the Fortuner.
  • The Endeavor, with new engines, could pose a strong competition to the Fortuner, known for its reliability and fan following.

13:06

Ford's EV Strategy in India: The Everest

  • Ford is planning to reintroduce the Endeavor as the Everest, potentially starting with CBU imports before transitioning to local assembly.
  • Ford is working on an affordable EV architecture through a separate team called Skunk Works, aiming to reduce costs and offer multiple body styles for export potential.
  • The EV policy in India encourages investment, with Ford considering a $500 million investment for a new EV line and platform, benefiting from reduced import duties.
  • Ford's CEO, Jim Fali, has a personal connection to India and supports an orphanage in Kerala, potentially influencing Ford's return to the market.
  • Ford's focus in India will primarily be on EVs, with the potential for the Ranger pickup to enter the market, emphasizing a measured approach with a fun driving experience.
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