DELHI – Ford Motor Co has announced to cease manufacturing in India after it suffered losses of more than $2 in past ten years.
It has become the latest automaker after the US-based General Motors and Harley Davidson left India that had once promised exponential growth.
Ford entered Indian market 25 years but he could not make its way towards profitability. In its statement, the car manufacturer said it accumulated operating losses of more than $2bn in 10 years and demand for its new vehicles had been reduced.
“Despite [our] efforts, we have not been able to find a sustainable path forward to long-term profitability,” Ford India head Anurag Mehrotra said in the statement.
“The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market,” he said.
The demand for low-cost vehicles produced by Suzuki and Hyundai is much higher in the South Asian country.
Ford will “cease vehicle manufacturing in Chennai & Sanand; Progressively wind-down manufacturing of vehicles for export at Sanand plant by Q4 2021 & Chennai engine/vehicle assembly plants by Q2, 2022,” it said in a statement, adding that manufacturing engines will continue for export.
The US automaker will continue to sell some of its cars – Mustang coupe & Mustang Mach-E – in India through imports and it will also continue service for existing customers.