Ford to stop making cars in India, lost over $2 billion over the last 10 years

Ford Motor Co’s Indian arm will cease manufacturing and has recorded roughly USD 2 billion in restructuring costs as they scale back operations. In the process, about 4,000 Ford employees will be affected.

The American car manufacturer entered the India market in 1994, but has captured less than 2-percent of India’s passenger car market. "Despite (our) efforts, we have not been able to find a sustainable path forward to long-term profitability," said Ford India boss Anurag Mehrotra.

Jim Farley, Ford Motor Co’s president and CEO 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.”

Ford will stop assembly work at its Gujarat plant by the fourth quarter of the year, as well as vehicle and engine manufacturing plants in Chennai by the second quarter of 2022.

India is the second market that Ford has exited this year. Back in January, Ford stopped vehicle production in Brazil by closing three of its plant there, resulting in USD 4.1 billion in pre-tax charges.

Ford’s track record in other Asian countries isn’t particularly great as well. In 2016, not only did the Blue Oval exited Japan, the also ceased operations in Indonesia. 

Closer to home, Ford Malaysia exited the country in 2008, handing over the distributorship to Sime Darby Auto Connexion (SDAC).

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