Ford puts an end to vehicle production in India

It was earlier this month when the leading manufacturer Ford decided to put an end to the production of its cars and SUVs in India. It is one of the first major manufacturers in the country which launched its operations with the Mahindra group. 

While the decision has been a huge blow to the overall automobile industry and all the associates of the brand, the decision has been a result of continuous losses over the year. India’s car market is dominated by Korean Hyundai and Japan’s Suzuki, which works in collaboration with Maruti in the country.

Further, the automaker had some stiff competition from fellow brands like the home-grown Tata, and new companies like Kia, which were enjoying good traction despite being newcomers in the market. Ford, in contrast, was facing a steep fall in share prices due to failing products over the years. 

In terms of its operations, the automaker was already working at 20% of its overall capacity in the plants of Sanand, Gujarat, and Chennai. While the Sanand will stop producing the vehicles by the fourth quarter of this year, the Chennai-based engine and vehicle plant will halt its operations by the second quarter of 2022.

As per Ford president and CEO Jim Farley, “Despite investing significantly in India, Ford has accumulated more than $US2 billion in operating losses over the last 10 years, and demand for new vehicles has been much weaker than forecast.” 

However, having a customer base of over 1 million in the country, the automaker has also laid down plans for the existing customers of the brand. As per its official statement, the automaker commented, “We are also committed to serving our existing customers with the same Feels like Family spirit."

While the customers will be receiving all the service and warranty support, the automaker has also added that dealers will be providing a competitive cost of ownership. Lastly, the automaker will continue to bring its innovation to India, but only via imports.

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