Why is Ford leaving India, and what does this imply for customers?
How did a company recognised for producing dynamic, high-performance equipment leave India? So where does it leave the company's customers?
Read Below to Know more.
Ford India Motors Leaves India: Suzuki dominates India's automobile industry, with low-cost vehicles accounting for more than half of all passenger vehicle sales.
In the 1990s, Ford entered India, seeking to tap into one of the world's largest car markets.
However, in the price-sensitive South Asian country, the carmaker failed to increase its low market share.
Ford's Indian assets were moved to a joint venture with local powerhouse Mahindra & Mahindra in 2019.
They pulled off the deal at the start of the year, citing the coronavirus epidemic as a reason for the cancellation.
Ford reported operational losses of more than $2 billion during the previous ten years, as well as an asset write-down of $800 million in 2019.
Ford will immediately stop producing automobiles for sale in India.
By the end of the year, the automaker will close its Sanand factory in western Gujarat, which produces automobiles for export.
By the second quarter of next year, Ford's engine and car assembly plants in Chennai will be shut down. It was also said that around 4,000 jobs would be affected.
There's a good chance that the fast-growing Ola electric branch will want to buy these factories and get started on their massive production plans.
What Will Happen To Ford Car Owners?
Ford has stated that it will continue to supply its customers in India with car aftermarket parts, repair facilities, and warranty support.
In Delhi, Chennai, Mumbai, Sanand, and Kolkata, the American carmaker will operate vehicle parts depots.
It will work closely with its dealer network to reorganise and make the transition from sales and service to parts and service support as smooth as possible.