Ford Motor announces multi-billion dollar loss in India

 
Ford Motor Company is ending its manufacturing in India, which will result in a loss of 2 billion to the economy, while it will be the largest auto company to leave India in recent times.

According to the news agency Reuters, Ford's decision has been made after years of trying to get the attention of consumers in India and make a profit.

The well-known car maker came to India 25 years ago but managed to capture less than 2% of the market.

Ford said in a statement that India had lost more than Rs 2 billion in the last 10 years and there was a decline in demand for new vehicles.

"Despite our efforts, we have not been able to achieve long-term profits," said Anurag Mehrotra, head of Ford India.

He said the decision was forced after years of losses, overcapacity in the market and declining growth in India's car market.

Earlier, American carmakers General Motors and Harley-Davidson had also left India. The Indian market was once in high demand and now there is a demand for low-cost vehicles from Suzuki Motor Corporation and Hyundai Motor.

According to the plan, Ford India will close its plant at Sinand in the western state of Gujarat by the end of 2021, as well as an engine manufacturing plant in Chennai, South India, by 2022.

An American company like Ford will now sell its cars in India through imports and continue to serve its existing customers through dealers.

According to the report, this decision of the American company will affect an estimated 4,000 employees in India.

One of the reasons for Ford's termination of operations in India is its failure to enter into a joint venture between local company Mahindra & Mahindra.

According to the report, if the agreement had been reached, Ford would have continued to build low-cost vehicles, but has closed its independent operations.

The company said the decision to close production was made after considering partnerships, platform sharing, manufacturing contracts in production and the possibility of selling manufacturing plants, but is still being considered.