Ford India To Shut Down Both Vehicle Manufacturing Plants in India

This is the second major exit by a global automotive brand from India, following General Motors’ exit in 2017.

Image used for representational purposes.

(Photo Courtesy: Ford)

Ford India announced on Thursday, 9 September, its decision to immediately cease manufacturing vehicles for sale in India.

The company will progressively 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, it said in a tweet.

This is the second major exit by a global automotive brand from India, following US giant General Motors’ exit in 2017. The decision will impact over 4,000 employees in the country, ET Auto reported.

Ford Motor Company’s president and CEO, Jim Farley, said, "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”, Moneycontrol reported.

The company will however, retain its engine plant in Sanand and continue to service its products in India.

Meanwhile, the company would continue to sell its Ford Mustang and Ford Endeavour in India, sources were quoted as saying.

The Ford Business Centre, product development centre, and the engine plant that produces mid-size panther engines that caters to the global operation will continue to operate.

(With inputs from ET Auto and MoneyControl)