US carmaker Ford, which last month partnered with Indian auto major Mahindra&Mahindra to explore joint working in product development and electric mobility, said they need a stable and predictable policy from the Indian government to make the investment and to realise its vision of electrifying vehicles before 2030.
“I need policy and that product is going to last for another 10 years. So, I need a 15-year predictability on policy, so that we can make right level of investments for delivering on the government’s vision,” said Anurag Mehrotra, managing director at Ford India to Business Standard in an interview. The company needs policy and products are going to last for another 10 years, he added.
Ford India and M&M have signed the non-binding deal. The company plans to achieve profitability through working in all the identified areas with M&M. “We don’t intend selling any product at a loss,” said Mehrotra.
In India, Ford Motor has developed a platform Ka, on which it has built cars such as hatchback Figo and sub-4 metre sedan. However, nor Ford Motor neither Mahindra spokespersons have confirmed or commented on the report.
Many countries are moving to electrification of vehicles, India too has made a commitment towards being EV market. However, the readiness, the infrastructure, and other preparatory activities are where there is a lot of work that needs to be done. Infrastructural support is where there need to be improvements as well.
At present, less than 1% of the 200 million vehicles on Indian roads are estimated to be electric vehicles.
M&M to manufacture in-house
Anand Mahindra-led group will supply 150 of the 500 electric sedans in the first phase of the government’s order to procure 10,000 electric vehicles. Tata Motors Ltd that quoted the lowest price, will provide 350. The order is part of Prime Minister Narendra Modi’s push to make all cars electric by 2030 to lower oil imports and curb emissions.
M&M has already said that it will invest close to Rs 600 crore in technology and components for electric vehicles.