Why? “Ford Quits In India” The Reason Behind

Ford Quits In India: Ford motors, an American multinational automobile company, is now winding up its operations in India. There are two plants of Ford motors in India – one at Sanand, Gujrat, and the other at Maraimalai, Chennai. It has been reported that these two plants are going to be shut down by Ford India as Ford quits in India. Ford has suffered a loss of approximately USD 2 billion and a decrease in demand.

  • Ford is working on leaving India
  • The decrease in demand and the loss has made Ford leave the country
  • Ford car owners will receive the services even after Ford quits in India.

Condition Of Ford And The Reason Behind “Ford Quits In India”

The American company Ford entered India about 25 years ago but has less than a 2% share in the Indian market of passenger vehicles. It has been stated by Ford that they have suffered losses of USD 2 billion in India in 10 years. Furthermore, they have seen a weak demand for their new models in India.

Earlier it was announced that the joint venture of Ford and Mahindra is officially over. If Ford and Mahindra had signed a deal and started a venture, Ford could have continued the production of cars at a comparatively lower price. The only issue was that this venture was terminating Ford’s independent operations. This is the reason why Ford quits in India.

Why Did Ford Make This Decision?

Ford hasn’t launched any new cars for some time in India. Last year, Ford was about to launch the Figo automatic but that didn’t happen. It was launched this year in July.

To stay in the competition, there are only two things Ford can do. They can either introduce a new car loaded with features or lower the price of their cars. If Ford reduces the price of their cars, they might get less margin in profit, but the demand would rise as it would be more economical.

Ford is not the first company to face this. Previously, US companies like Harley Davidson and General Motors also left India even after expecting exponential growth. The companies that are still in India are Suzuki Motor Corp and Hyundai, which commonly sell low-cost cars in India.

What Will Happen To Ford Car Owners?

Ford stated that they will continue to provide parts of the vehicles, warranty support, and service facilities to their customers in India. The parts of the cars will be maintained by the company in Delhi, Chennai, Mumbai, Sanand, and Kolkata. With this, the company will continue providing its services to Indian customers who have Ford cars.

What Will Happen To The Ford Models That Are In India?

Ford sells five models of its cars in India. This includes Ford Figo, Ford Freestyle, Ford EcoSport, Ford Aspire, and Ford Endeavour. The sales of these models will continue until all the models are sold in India. The two most sold models of Ford cars are Ford Endeavour and Ford EcoSport.

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The reason behind why Ford is leaving India is that it is facing a severe loss in the country. They could have stayed in India, but there are conditions of lowering the price or increasing the features. But, even though they are leaving India, the company is still providing services to their customers in India.

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