BREAKING: Ford To Stop Manufacturing Cars In India

Ford Motor Co will stop manufacturing cars in India and shut down its plants in the country, becoming the latest U.S. automaker to quit the Indian market after General Motors and Harley Davidson. Ford has been struggling in the Indian market amid weak domestic volumes, falling exports, and a lack of new products.The company, which invested about USD 2.5 billion at its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, will stop selling vehicles such as the EcoSport, Figo, Freestyle and Aspire which are produced from these plants. However, the U.S. automaker will continue to sell some of its cars in India through imports of fully-built vehicles and knocked-down units, and it would also provide support to dealers to service existing customers. The company will retain its engine plant in Sanand, Gujarat and continue to service its products in India.Jim Farley, Ford Motor Company’s president and CEO said via a release “Despite investing significantly in India, Ford has accumulated more than $2 billion of operating losses over the past 10 years and demand for new vehicles has been much weaker than forecast.”As per reports, Ford will be closing down its manufacturing facilities altogether by Q2 2022. It won’t be producing models or engines for exports either. However, Ford will continue to fulfil existing export orders before closing down its facilities.In October 2019, Ford Motor Co and Mahindra had announced an agreement under which Mahindra & Mahindra would acquire a majority stake in a wholly-owned arm of Ford Motor Co (FMC) that will take over the automotive business of the US auto major in India. However, the deal was scrapped as both companies decided to continue independent operations in India.Talking about the Nepalese market, Ford Nepal won't halt its services or operations. The company will continue to provide services to its already existing consumers. Similarly, it will also bring in global models like Ranger and Raptor, and the Everest SUV instead of the Endeavour.  The company also has plans to introduce the Mach E electric car, Bronco SUV and Territory crossover SUV, in the near future.