Report: Ford is ending its production operations in India

The brand never really gained its footing in the market
by Drei Laurel | Sep 10, 2021
PHOTO: Ford
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After more than 25 years, Ford is finally throwing in the towel in India. The carmaker made the announcement yesterday, calling it a “difficult but necessary” move aimed at long-term growth.

According to a report by CNN, the American car manufacturer is calling it quits in the market after seeing over $2 billion in losses over the past decade.

In a statement, Ford India head Anurag Mehrotra explained that the company just was not able to find a “sustainable path forward to long-term profitability that includes in-country vehicle manufacturing,” and that the decision is “reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market.”

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Around 4,000 employees will be laid off once manufacturing comes to a halt, the brand said. The company’s plants in Sanand and Chennai will be closing in the coming months, but the brand says it will work closely with personnel impacted by Ford’s shutdowns.

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A separate report by Reuters highlighted that the car brand failed to gain more than a 2% market share in the country in its 25 years there.  With performance like that, Ford’s move doesn’t come as much of a surprise—especially given its new focus on developing hybrid and electric models.

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Do you think the Blue Oval will ever make a return to India? Let us know what you think in the comments.

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