According to reports, Becoming the latest automaker to leave a major growth market dominated by Asian rivals, The Ford Motor will stop manufacturing in India and take a hit of about $2 billion as it does not see a path to profitability in the country.
As per details, The decision by carmaker comes after it struggled for years to win over Indian consumers and turn a profit, The Ford entered India 25 years ago but has a less than 2% share of the passenger vehicles market.
The Ford said in its statement that it accumulated operating losses of more than $2 billion in 10 years in India and demand for its new vehicles had been weak, “Despite (our) efforts, we have not been able to find a sustainable path forward to long-term profitability,”
Ford India head Anurag Mehrotra said in the statement that “The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market,”
It must be noted that the carmaker Ford follows other U.S. automakers such as General Motors and Harley Davidson which have already left India, a market that had once promised exponential growth, The country is dominated by mainly low-cost cars made by Suzuki Motor Corp and Hyundai Motor.
Ford India, As part of the plan will wind down operations at its plant in Sanand in the western state of Gujarat by the 4th quarter of 2021 and vehicle and engine manufacturing in its southern Indian plant in Chennai by 2022.
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