The well-known automobile company Ford has decided to stop its manufacturing units in India. As of now, it is the newest company to stop its car development program in the country.
Why is Ford terminating their manufacturing process in India?
According to the latest reports, Ford has not managed to gain much profit from the country. Hence, they have decided to put an end to their development plants in the states of Tamil Nadu and Gujarat. This plan of action has been set to take place during the second quarter of the year 2022.
The company has reported that they have not been very successful in making a profit out of their products in India. The last 10 years have given the company a loss of more than $2bn in India. Moreover, the market for Ford cars has also diminished in the country.
However, Ford has claimed that it will continue to manufacture its engines for export purposes. Furthermore, they will also carry on with their service maintenance and warranty customs for prevailing users.
The history of the said company in India goes long back since they have been operating for more than 25 years in the country. However, Ford possesses a share of less than 2% in India’s entire automobile market. Due to this reason, they are in the ninth position in the list of India’s largest automobile companies.
Companies that have walked on the same path prior to Ford
Prior to the closing declaration by Ford, General Motors have terminated its production in India in the year 2017. Furthermore, one of the biggest motorcycle companies in the world, Harley Davidson had also put an end to their manufacturing program in the country.
All of the withdrawals made by these global companies have acted as setbacks for India’s goal towards bringing in more international manufacturing brands in the country.