We all have heard the phrase that India is the fastest growing country in the world. At the same time every day, hundreds of new companies enter the Indian Market. Despite India being the fastest-growing country, many companies are struggling to make profits. One of the main reasons for this is the heavy competition between the companies.
We may have many startups who get into the Indian market with many ambitious plans. Whereas in reality most of them can’t sustain themselves, in-between market leaders. As a result, many startups get shut down, but shutting down companies with decades of experience and expertise is a bit hard to believe. Unfortunately, with Ford Motors, that’s what exactly happened.
Ford Motors, one of the very well-known brands in manufacturing vehicles, has stopped manufacturing vehicles for sale in India. Based on reports, Ford Motors is going to exit the Indian market. So it will be shutting its manufacturing plants. Also, the manufacturing of vehicles for sale will stop immediately.
With this decision, Ford Motors being shut down in India is going to affect nearly 4,000 employees. People who are working in the Ford Motor manufacturing department will be laid off soon. However, the decision Ford Motors has taken is to minimize the continuous losses that the company has been experiencing for the last few years.
Based on reports, the company will complete its shutdown process of manufacturing vehicles by the end of next year. The shutting process will take nearly a year. First, the US automaker will shut down its assembly plant in Gujarat, then it will build vehicle and manufacturing plants in Chennai. So the process of shutting down the manufacturing process of Ford Motor vehicles will be done by the second quarter of next year.
Ford Motors’ decision makes perfect sense as they have been experiencing heavy losses for the past few years in the Indian Market. The decision came after the accumulated losses and lack of expected growth in the Indian market.
The managing director of Ford India Anurag Mehrotra further stated that “We have not been able to find a sustainable path forward for long-term profitability and growth. So it would be a wise decision to shut down the manufacturing process, as it was not profitable for them to continue. It would be a great loss for the Indian economy too.
However, Ford Motor has confirmed that they will be selling their vehicle in India through imports. Not only that, for existing customers, the US automaker has ensured that it will continue servicing them with the help of deals and support existing deals as usual. So if you won any of the Ford vehicles, don’t worry because Ford ensured that their decision of shutting down in the Indian Market will not affect you in any way.
All the service centers of Ford Motors will work as usual. There could be many reasons for the company’s latest decision. One of it could be that Ford Motor has been experiencing heavy competition, and it was not able to beat the competition like Maruti Suzuki. Maruti Suzuki is one of the dominating vehicle makers in India. Another reason could be the heavy taxes of the Indian Government.
