Ford Motor Co. has reportedly decided to shut both its manufacturing facilities in India and has blamed the decision on lack of profitability, Reuters reports on Thursday, citing information received from two sources. An official announcement to this effect from Ford is expected later today.
The Reuters report stated that one of the sources confirmed that the Ford decision to bring operations at its Sanand and Maraimalai plants comes because remaining profitable in India wasn’t seen as something possible.
At present, Ford offers vehicles like Figo, Aspire, Freestyle, EcoSport and Endeavour in the market here.
Rumours of a possible Ford exit from India has been doing the rounds for some time now even though the company had been – and still remains – tight-lipped. The going has been tough for the US auto maker as none of its products have made much of a mark in the Indian passenger vehicle segment. With the entry of newer players like Kia Motor and MG Motor in 2019, the transition towards BS 6, the pandemic hitting demand and production from time to time, and the global shortage in semiconductor, Ford may well have found going getting only tougher in India.
Talks of a joint venture with Mahindra and Mahindra also came to a naught for Ford. Facing losses, Ford had deputed one of its senior executives – Steven Armstrong – to evaluate the carmaker’s investment in the country.