As per the reports coming from sources, the American car manufacturer- Ford Motors is planning to wrap up its operations and trying to sell its plants in Gujarat and Tamil Nadu.
However, the news does not come as a shock as the company hasn’t launched new cars in India in a long time barring their SUV Endeavour andEcosport. Last year there were reports that Ford India is planning to launch the Ford Figo Automatic.
After much delay, the second-gen of Figo is now being readied for launch but it’s already late and doesn’t boast any significant feature or powertrain advantage over the competition. One thing it did well was have sorted dynamics. The price tag is also a thing to worry about as it does not undercut well-established brand names. It is going to be launched earlier next month in the same segment as the Hyundai i20, Maruti Suzuki Baleno and the Volkswagen Polo.
As per reports, the US-based auto major is likely in talks with various car firms for either contract manufacturing or sale or both of its Indian factories- Maraimalainagar in Tamil Nadu and Sanand in Gujarat. Sources say that ford is also in contact with Ola which could use Ford’s factories to build electric cars, but as of nowOla refuses to comment on speculations.
Another reason for Ford leaving India could be the scrapping of Ford and Mahindra&Mahindra’s Joint Venture which was scrapped in January 2021, citing changes in global economic and business conditions partly due to the coronavirus pandemic.
When the two companies announced an agreement in October 2019, under which Mahindra & Mahindra would acquire a majority stake in the wholly-owned arm of Ford Motor Co (FMC) that will take over the automotive business of the US car-maker in India.
The proposed new entity was to develop, market and distribute Ford brand vehicles in India while also selling both Mahindra and Ford cars in the high-growth emerging markets.
But the Joint Venture was scrapped owing to the fundamental changes in global economic and business conditions caused majorly by the global pandemic. Those changes influenced separate decisions by Ford and Mahindra to re-assess their respective capital allocation priorities.
Now the future for Ford looks bleak in India as the domestic automobile sales are at an all-time low and the economy is not in the best of its shape.