“Despite substantial investment India, Ford has suffered a loss of more than $ 2 billion Has been in operation for the last 10 years and the demand for new vehicles is much weaker than expected.
Ford explained Its exit from the market dominated by Asian competitors and Qualified as “instant”, where it stops making cars. Oval’s signature a few months ago Announced his departure from Brazil.
Ford India focuses on export machinery
The manufacturer explained in a statement that the production of vehicles for export at the Sanand assembly plant will be reduced by the fourth quarter of 2021, and this will be done at the Chennai engine and vehicle assembly plants in the second quarter. 2022.
Therefore, sales of current models such as Figo, Aspire, Freestyle, EcoSport and Endeavor will cease as soon as the existing dealer inventory is sold.
On the other hand, in addition to maintaining the business solutions area, Ford India manufactures machinery for export, Maintaining a small network of suppliers, as well as customer support functions with service, aftermarket components and warranty services.
Roughly expected 4,000 employees have been affected For restoration. The decision was made in recent years by other greats such as General Motors or Harley Davidson.
As Ford India Chairman and CEO Anurag Mehrotra said, “This decision was confirmed by the accumulated losses over the years, the continued high capacity in the industry and the lack of expected growth in the Indian auto market.”
This paves the way for Asian manufacturers such as Suzuki and Hyundai to dominate sales in the country.
The American manufacturer entered the Indian market 25 years ago, but was able to accumulate only 2% market share. The strategy led to a sharp drop in sales and increased economic losses, with the decision to leave the Brazilian market earlier this year.
Investing in an electric car forces manufacturers to leave unprofitable markets.
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