Ford Motor Co will stop manufacturing cars in India and shut down its both plants in the country, say sources. A formal announcement by the company is expected soon. As per reports, Ford has been struggling for years to make a mark in India’s automotive market.
The company, which invested about $2.5 billion at its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, will stop selling vehicles such as EcoSport, Figo and Aspire, which are produced from these plants. It will only sell imported vehicles such as Mustang in the country.
Ford is the latest vehicle maker to cease production in India, following US companies such as General Motors and Harley Davidson.
Ford India has an installed manufacturing capacity of 6,10,000 engines and 4,40,000 vehicles a year. It also exported its models such as Figo, Aspire, and EcoSport to over 70 markets around the world.
In January this year, Ford Motor Co and Mahindra & Mahindra had decided to scrap their previously announced automotive joint venture and instead chose to continue independent operations in India.
In October 2019, the two companies 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.
-PTC News with inputs from agencies