Why Ford Motor is Quitting its Business in India
- By Admin, on Sept. 21, 2021
- Categories: Cars, Analysis & Features
Why Ford Motor is Quitting its Business in India
Ford Motor has operated for more than 2 decades in India, but now it has decided to turn off the business and local manufacturing here. The US-based motor manufacturer said that there is no concrete vision of profitability in India. The automaker company that has witnessed immense demand with models such as EcoSport, Figo, and Ikon has now only contributed 2 percent share in the automobile market. Ford India will close down its functions and plants in Sanand in Gujarat by the end of 2021 and engine and vehicle manufacturing in its Chennai plants by the starting of 2022.
Let us know about the reasons behind Ford is closing down its operations and manufacturing plants in India:-
Most car lovers are fascinated by Maruti Suzuki India and Hyundai Motor India in India. Both Maruti and Hyundai Motor largely conquer the car market in India. Moreover, these car manufacturers come with affordable car models, which influence customers to pick them easily. On the contrary, Ford has faced many challenges to generate profit in India.
Both Ford and Hyundai motor has launched in India’s market in the middle of 1990. But the story of the two automaker companies is entirely separate in terms of business and profitability. While Hyundai has successfully achieved the second-biggest car manufacturer in India, on the contrary, Ford has decided to close down its manufacturing plants in India.
Unsuccessful Joint Venture:
In October 2019, Ford and Mahindra announced that they would work as a joint venture in India. The motto of this anticipated joint venture is to reduce manufacturing and developing operational costs of vehicles for budding markets. The final timeline to confirm a joint venture between Ford and Mahindra was 31st December 2021, but both agreed to call the joint venture decision and not expand the deadline to consider it again.
At the time of the partnership announcement, both automakers said that they anticipated introducing 3 fresh electric vehicles, including a medium-sized SUV, for the rising market.Covid19 has brutally shattered the collaboration dream of both companies as they both have experienced loss and sales decline during the period.
Heavy Operational Expenses:
Ford has spent $2 billion to restructure its business but failed to gain profit. Hence due to huge operational loss, it is going to close down manufacturing plants in India; however, Ford will continue to perform business. Considering the operational expenditure and not gaining expected return has forced Ford India to shut down the operation.
Expert says that the decision of Ford closings its manufacturing plants and operation in India won’t affect the Indian automobile business. However, as we have already stated, Ford will continue to sell its imported vehicles in India. Always find an authorized car dealer if you wish to buy any car and Car ki Deal is a reputed car dealer in Delhi NCR. So contact us for any vehicle, whether used or new, and you can find all vehicle models here.
All the above benefits can be availed by you just by clicking https://www.carkideal.com/en/bestcar-deals/
Just Reach Us🧐… For a Complete Satisfactory Deal with Hassle-Free Experience.🙂
#CarKideal - One Of The Most Chosen Platform Of Car Deals.
To know more -
Visit us at https://www.carkideal.com/en/
+91 9711621897 | + 91 8368774393 | 011 49484848
Do Like and Subscribe our Facebook, Twitter & Insta to get the best updates on automobiles Sector, Be it New Cars, Used Cars, Demo Cars or Display Cars. Register with, #Carkideal will be #HappyToHelp
Leave Your Comment
You must be logged in to post a comment
Unleashing the Future: Hyundai's Next Generation Verna hits the Indian Market at Rs 10.89 Lakh >
Why should you consider Tata cars as a first-time car buyer? >
Get Ready India, Honda is Launching a New Mid-Size SUV >
Battle of the Sedans >
Prices of the G63 AMG by Mercedes-Benz have been raised nearly by ₹75 lakh >
2023 March ( 5 articles ) >
2023 February ( 1 article ) >
2023 January ( 2 articles ) >
2022 December ( 3 articles ) >
2022 October ( 1 article ) >
2022 September ( 3 articles ) >
2022 August ( 1 article ) >
2022 July ( 2 articles ) >
2022 June ( 2 articles ) >
2022 May ( 3 articles ) >
2022 March ( 3 articles ) >
2022 February ( 1 article ) >
2022 January ( 3 articles ) >
2021 December ( 3 articles ) >
2021 October ( 2 articles ) >
2021 September ( 3 articles ) >
2021 August ( 1 article ) >
2021 July ( 3 articles ) >
2021 June ( 1 article ) >
2021 May ( 1 article ) >
2021 April ( 1 article ) >
2021 January ( 1 article ) >
2020 December ( 2 articles ) >
2020 September ( 1 article ) >
2020 August ( 1 article ) >
2020 July ( 1 article ) >
2020 June ( 2 articles ) >
SUV ( 12 articles ) >
Cars ( 26 articles ) >
Luxury ( 11 articles ) >
Analysis & Features ( 21 articles ) >
Buying & Selling ( 11 articles ) >
Hatchback ( 0 articles ) >
Sedan ( 2 articles ) >
Sports Car ( 1 article ) >
Test Drive ( 0 articles ) >
Uncategorized ( 0 articles ) >
Upcomming Cars ( 7 articles ) >