Ford to end manufacturing cars in India; Things you need to know

The American carmaker, Ford has planned to end the manufacturing of its cars in India due to market loss. The company will no longer make cars in India and says that as part of its major restructuring program, it will now focus on expanding the Ford Business Solutions team.

The company entered the Indian market back in 1994 and after 27 years. The American carmaker is stopping the production of its cars and SUVs in India. The company took the decision due to huge accumulated losses and over the past 10 years, the total losses accumulated crossed $2 billion (Rs. 14,700 crores).

Ford’s new decisions

  1. Ford says that the sales of Figo, Aspire, Freestyle, EcoSport and Endeavour models will cease once existing dealer inventories are sold. Nevertheless, the company assured that it will provide parts, service and warranty support to its customers in India. The company thinks that it would no longer be a profitable business to continue the production in India at this time.
  1. Ford will no longer sell locally made cars in India, but things will not change for existing ford customers. Its parts and service operations will continue as part of regular business. In fact, instead of being a sales & service touchpoint, Ford’s dealer network will now offer parts and service support. However, the resale value of the Ford car will start taking major hits.
  1.  Although the company has decided to cease its production in India, the company aims to invest over $30 billion globally to develop new hybrid and fully electric vehicles like the Mustang Mach-E. Currently, it is unclear whether those will come to India or not.
  2. However, the company said that it will continue to operate its engine factory in Sanand, Gujarat. The Engine plant will continue to produce and export engines for the Ranger pickup truck. Also, Ford will maintain its parts depots in Delhi, Chennai, Mumbai, Sanand, and Kolkata.