While the chip crisis, which deeply affected the automotive giants, continued, Ford decided to stop its production in India on the grounds that it did not see long-term profitability and could not find a sustainable solution. Ford India General Manager Anurag Mehrotra said, “The decision was made due to years of accumulated losses in India's auto market combined with persistent excess industry capacity and lack of expected growth.” said.
IT WILL COST $2 BILLION
“We did not find a sustainable path to long-term profitability involving in-country vehicle production,” Mehrotra said.
It was stated that while Ford decided to leave the country, which it saw as one of the three largest markets in the past, with the closing of its automobile factories in India, the costs of restructuring would be approximately 2 billion dollars.
4 EMPLOYEES WILL BE AFFECTED
The US automaker said in a statement that it will immediately cease production of vehicles for sale in India, affecting about 4 employees.
Ford said it will close an assembly plant in the western state of Gujarat in the fourth quarter of 2021 and its vehicle and engine manufacturing facilities in the country's Chennai city in the second quarter of next year.
FOREIGN COMPANIES CANNOT FIND A PLACE IN INDIA
In the automobile market dominated by Maruti Suzuki in India, foreign companies had previously had difficulty finding a place.
In the country where a tax of 28 percent is applied to gasoline vehicles, Toyota announced that they did not plan to increase their operations in India last year due to high taxes, while Harley Davidson and General Motors also left the Indian market.