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The Ford Motor Company has closed its manufacturing plants in India after 25 years in business. According to the company statement, all India Ford plants shutted down. Globally, Ford Motor Company is spending an additional 1.7 billion dollars to restructure its operations. Last 10 years Ford has faced more than $2 billion loss.

Ford said about Gujarat and Tamil Nadu states Ford plant:

The company plans to shut down its facilities in Gujarat by the fourth quarter of 2021 and the Tamil Nadu States by the second quarter of 2022 but will continue to make car engines for export.

Ford within India stopped working but only two plants manufacturing vehicles for export Gujarat and Tamil Nadu. Gujarat manufacturing vehicles fourth quarter 2021 and Chennai and vehicle assembly plant within Q2 2022.

A company with a 2% market share is struggling to boost sales. In India, Ford will cease production following General Motors and Harley-Davidson. It is a very big loss leaving a ford company to India. Ford India manufactures 6,10,000 engines and 4,40,000 vehicles each year. More than 70 markets around the world served by its cars such as the Figo, Aspire, and EcoSport. 

$200 million loss

According to a media report, the company makes $200 million making cars in India. That is why Ford Company Backup all plants in India. Therefore, Ford Motor will no longer sell vehicles made at these two plants, such as the EcoSport, Figo, and Aspire.

Before Ford Shut down the market, India had the world’s third-largest car market by 2020, India sales 5 million vehicles a year. Meanwhile, sales have consistently lagged behind those in Europe and Japan at around 3 million.

These plants will closed

At the same time, the closure of these plants will have a direct impact on more than four thousand employees working in them. At present, a total of 11 thousand employees are working in Ford Company in India. The Sanand plant in Gujarat closed after December this year and the Chennai plant after March next year.

The company could not hold the market

Ford India says it will restructure its operations by expanding its Chennai-based Ford Business Solutions team and bringing forward Ford’s iconic global models and electrified SUVs while phasing out the company’s vehicle manufacturing operations in India. In each of these countries, more than 4000 people employed. The company struggled in the Indian market for a long time but was not able to make a good hold on the market.

Reason Ford decided to end manufacturing in India:

Weak demand: 

Over the last 10 years, Ford’s car demand is very low, that’s the reason Ford ended manufacturing and weak demand for cars and lost $2 Billion in India.

Low-cost cars: India’s main companies Maruti Suzuki India and Hyundai Motor India provide very low-cost cars. And the reason Ford decided to end manufacturing in India because ford car demand is very low in India.

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