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Ford ends manufacturing operations in India; will sell imported vehicles
Ford Motor ceases manufacturing plants in India

Ford ends manufacturing operations in India; will sell imported vehicles

Edited by Mudit Dube
Sep 09, 2021
06:14 pm

What's the story

American automobile giant Ford has announced that it will cease all manufacturing activities in India and shut down its production units by next year. The company has two manufacturing plants in the country - one in Maraimalai, Tamil Nadu and the other in Sanand, Gujarat. The decision has been made due to the lack of profitability. Here are more details.

Official words

'Looking to create a sustainably profitable business in India'

"The decision was reinforced by years of accumulated losses, persistent industry overcapacity, and lack of expected growth in India's car market," said Anurag Mehrotra, President and MD at Ford India. With total operating losses of over $2 billion over the past 10 years, the company is now looking to create a "sustainably profitable business" in the country.

Information

Operations to completely halt by 2022

Ford's Sanand plant will be shut down by the last quarter of this year while the operations in the Maraimalai facility will be terminated by the second quarter of 2022. Approximately, 4,000 employees are expected to be affected by this decision.

Future plans

The automaker will offer some premium cars through CBU route

Ford has confirmed that it will bring some of its premium vehicles such as the Mustang Coupe, Ranger, and the Mustang Mach-E models in India through the import route. The current portfolio in the country includes Freestyle, Figo, Aspire, EcoSport, and Endeavour models. The sale of these four-wheelers will also come to an end once the existing inventories are cleared.

Quote

'Ford will continue taking care of its customers in India'

Jam Farley, President and CEO at Ford, said, "I want to be clear that Ford will continue taking care of our valued customers in India, working closely with Ford India's dealers, all of whom have supported the company for a long time."