Ford had on September 9 said it was “forced” to end manufacturing operations in India and close plants at Sanand and Chennai due to “huge accumulated losses and lack of growth in a difficult market”
2002 Ford Mondeo
Ford’s exit from India is due to operational reasons and not a reflection on the country’s economy or automotive sector, a top government official has said after the American auto major announced it was shutting down units in the country following huge losses and “lack of growth in a difficult market”.
“Ford’s decision to end manufacturing is because of operational reasons and due to competition from Japanese and Korean car makers,” the official was quoted as saying by CNBC-TV18. The official requested anonymity.
The US carmaker’s decision was driven by operational inefficiency in the market which has attracted more than $35 billion in investments in six years, according to the report.
“Automotive sector continues to attract billions of dollars in investment, and Indian economy and auto sector continue to be great success story,” the official said.
Also read: Why Ford is exiting India and what it means for customers
Ford had on September 9 said it is “forced” to end manufacturing operations in India and close plants at Sanand and Chennai, due to “huge accumulated losses and lack of growth in a difficult market”.
Ford will wind down the manufacturing of vehicles for exports in Sanand, Gujarat by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022.
This is the second major exit of local manufacturing operations in India by a global automotive brand after General Motors stopped selling cars in India in 2017.