Ford Motor Co. will stop making cars in India now. The company is also going to close both the existing plants in the country. According to the news agency Reuters, Ford’s business is no longer giving them a profit here. So it has decided to stop the operation here. The company will leave from here in a year. However, this American car company will continue to sell some of its cars here through imports. According to sources, the company’s dealers will be present here so that the service can be given to the customers.
Also read: RSS Mouthpiece Attacks Infosys, calls it ‘Anti-National’ and supporter of ‘Tukde Tukde Gang’
Ford is the third company to decide to move out of the country. Earlier, General Motors and Harley Davidson had decided to move out of India. Both the companies started their operations here in the hope of good growth but they did not get success.
Ford India’s business journey in India has not been great. For the past few years, the company has failed to increase the sales of the car in the Indian market. Along with this, exports of Ford India’s cars have also fallen and due to delay in launching new products, Ford India’s share in the domestic market has fallen sharply.
Ford India, however, has said that its engine plant in Sanand, Gujarat, will remain operational and service to customers in India. Sources related to this matter have said that the company wants to sell the Mercedes Ford Mustang and Ford Endeavor in India. The loss of about two billion dollars in the last few years is believed to be behind the closure of the Indian business of Ford India.
Ford will continue to manufacture cars in India for the next 7 quarters. The company has already found buyers for both its factories. The Sanand plant in Gujarat is currently operating at about 10 percent capacity. Ford India’s Sanand plant is expected to be the first to shut down. It is expected that the Chennai plant of Ford India will continue to function till the year 2022. The reason for this is the process of fulfilling global orders and synergizing Indian operations.