Ford India Manufacturing Shut Down News: Is This The Beginning To Close Operations In The Country

Ford India Manufacturing Shut Down News: Is This The Beginning To Close Operations In The Country

Highlights

  • Ford started business in India in 1995 in association with Mahindra & Mahindra.
  • The partnership broke in 1998 and Ford began operating alone.
  • The company’s 30 odd dealerships will remain open for service.

New Delhi
America’s leading automobile company, Ford Motor Company has announced to stop production of vehicles at two of its plants in India. The company will now sell only imported vehicles in the country. Ford’s move is being speculated whether it is the company’s first step towards closing the business in India. There is a reason for such speculation that even before this, two American auto companies have closed their business in India and it started with the restructuring of the business. Before Ford, the two American companies that have closed their business in India are General Motors and Harley Davidson.

General Motors business
In May 2017, General Motors of America announced the closure of its sales in India. From the end of the year 2020, the company decided to stop manufacturing in India and also export from here. General Motors started operations in India in 1928. The company used to assemble cars, trucks and buses, which it discontinued in 1954. When General Motors closed its business in India, it accounted for only 1 per cent of passenger car sales.

General Motors used to sell cars under the Chevrolet brand. Once upon a time, Chevrolet cars were quite popular and General Motors was the 5th largest car company in India. The company also made cars in India and exported them to Mexico and some other Latin American companies.

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Harley Davidson business
American two wheeler company Harley-Davidson stopped its sales and manufacturing in India in September 2020. The company sells high end motorcycles. The company entered India in the year 2009, but even after 10 years, its penetration could not be good. The shutdown of business in the country was initiated by Harley Davidson by shifting its dealerships to less expensive locations, laying off employees and closing the Bawal plant.

Also read: One decision of Ford and 40000 jobs in danger

Service and after sales support will continue
Ford says that the restructuring of the business in India does not mean the end of service and after sales support for nearly one million customers in the country. The company’s 30 odd dealerships will remain open for service. Ford started business in India in 1995 in association with Mahindra & Mahindra. The partnership broke in 1998 and Ford began operating alone.

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