Ford to Stop Manufacturing Cars in India: Know the Reason

The American carmaker, Ford Motors, is going to end its 25-year journey in India by ceasing manufacturing operations and this was officially announced by the brand itself today. The company has decided to shut both of its production plants in the country, citing a lack of profitability as the reason for the move. The automaker said that the Sanand assembly facility will close by the end of this year and that manufacturing at the Chennai engine and assembly facilities will halt by the end of June 2022.

Ford stated in an official statement that it will continue to sell existing vehicles such as the EcoSport, Endeavour, Figo, Aspire, and Figo Freestyle until stock runs out, and no new vehicles will be produced. However, the brand also noted that it will introduce imported cars like the Mustang Coupe and the Mach-E electric SUV to our market. While talking about the effects of the restructuring, the manufacturer said that about 4,000 employees will be affected by this move. 

Moreover, this decision by Ford Motors came after more than $2 billion in operational losses in India over the previous ten years and it is now seeking to ‘create a sustainably profitable business in India.’ Ford has struggled to win the hearts of Indian car lovers but unfortunately became the latest car manufacturer to halt manufacturing in India, following in the footsteps of other U.S. companies such as General Motors and Harley-Davidson, who have previously exited a market that once promised exponential development.

Most importantly, Jam Farley, President and CEO of Ford Motor Company, stressed that existing customers will be taken care of. He further mentioned that Ford will continue to take care of its loyal customers in India, collaborating closely with Ford India’s dealers, all of whom have long supported the company. The carmaker stated that it will keep a significant presence in India by continuing engine production for export and offering customers after-sales services, aftermarket parts and warranty support.