Ford said in a statement on Thursday that it has lost more than $2 billion over 10 years and that demand for its new vehicles has fallen significantly.
New Delhi: Finally Ford Motor has also decided to shut down its business in India. Ford Motor will no longer manufacture cars in India and will shut down its manufacturing units. This decision of Ford Motor is estimated to cause a loss of $ 2 billion to the company.
Ford Motor will not make cars in India
According to the news of the news agency Reuters, Ford Motor was not getting good profits from the Indian market for a long time. American giant car company Ford Motor has been in India for 25 years, but till now its share in the Indian car market is less than 2 percent. Even after being in the Indian market for so long, she failed to win the hearts of the customers here and there was no profit.
What will happen to existing customers?
Ford said in a statement on Thursday that it has lost more than $2 billion over 10 years and that demand for its new vehicles has fallen significantly. In the statement, Anurag Mehrotra, Head, Ford India, said that despite our efforts, we could not achieve the path of profit in the long term. However, Ford will continue to sell some of its cars in India through imports. The company will provide service to its existing customers through dealers.
What will happen to Ford employees?
Ford had invested more than $200 million in the Chennai and Sanand production units in India. The 350-acre Chennai plant has a plant to manufacture 2 lakh cars annually. At the same time, 3.40 lakh engines are made every year. Ford Motor said that the closure of its two production units in Sanand in Gujarat and Chennai in Tamil Nadu will affect the jobs of 4000 employees. In a statement issued by the company, it has been said that the company will work closely with employees, unions, suppliers, dealers, government and other stakeholders in Chennai and Sanand. So that, at least people are affected by this decision.
Why did Ford lag behind?
Actually, low-cost small cars are more in trend in the Indian car market. That’s why cars from companies like Maruti and Hyundai dominate. Ford is number 9 in the list of top companies with 1.57 percent market share in the Indian auto market. At the same time, Maruti is on top. Ford sells Figo, Aspire, Freestyle, EcoSport, Endeavor cars in India. Their price is between Rs 7.75 lakh to Rs 33.81 lakh.
