Kashmir Digits

Ford India is shutting down operations in India after revealing accumulated loss of over $ 2 billion in the last decade.

The brand’s president and CEO Jim Farley said in addition to this the considerable drop in demand and the high running costs of Ford’s Sanand plant, and it no longer seemed feasible to continue operations.

The closure of the two production units operational from last more than two decades would affect approximately 4,000 employees.

Ford is the third car overseas manufacturing company to shut down operations in India after GM and Harley. Ford sales are down by 68% in 2021.

Ford saw a deal for another joint venture with Mahindra & Mahindra fall by the wayside. With shared expertise, manufacturing facilities, platforms and engines on the horizon, things did appear to look good for Ford, until early this year when the JV was called off. 

According to Ford’s statement it will cease to manufacture cars in India and will shut down the production facilities of its Sanand plant by the fourth quarter of 2021 and the Tamil Nadu one by the second quarter of 2022.

According to Anurag Mehrotra, the President and Managing Director of Ford India, the company considered multiple options involving partnerships, platform sharing and perhaps even selling its plants.

“The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market”

What it means for the customer?

Ford isn’t shutting shop in the way its other American compatriot General Motors did. The brand has made it very clear that it will continue to provide spares and continue to support customers with servicing.

While the dealers are likely to get affected, Ford will continue to import high-end models like the upcoming Mustang Mach-e, Ford Ranger and of course, the Mustang. SUVs like the Ford Bronco also appear to be in the pipeline.

 The brand continues to reiterate that the customers remain their top-priority and that the brand is working closely with existing employees, unions, dealers and suppliers.