It was one of the earliest foreign automakers to come to India after the Indian government allowed them to enter the domestic industry. With that, Ford’s 25-year-old journey in India has come to an end. “The decision was reinforced by years of accumulated losses, persistent industry overcapacity, and lack of expected growth in India’s car market.” “Despite these efforts, we have not been able to find a sustainable path forward to long-term profitability that includes in-country vehicle manufacturing,” said Anurag Mehrotra, president, and managing director of Ford India, in a statement. Over the past few months, the company had tried partnering with other manufacturers to share platforms, and even attempted contract manufacturing in an attempt to sell its manufacturing plants. Image: Rick Wilking / Reutersįord had already written down some $800 million of non-operating assets in 2019, and will now turn its focus on selling iconic vehicles such as the Mustang, apart from manufacturing engines for export. Former US Secretary of State John Kerry looks over the machines at a Ford India automotive factory with plant manager Kal Kearns (behind Kerry) in Sanand January 12, 2015. The company will begin by winding down its vehicle assembly plant in Sanand, Gujarat, by the fourth quarter of 2021 and its engine manufacturing plant in Chennai by the second quarter of 2022. “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,” said Jim Farley, Ford Motor Company’s president and CEO, in a statement. In 2017, General Motors had exited India. With Ford’s exit, the only American automobile manufacturer in India remains Fiat Chrysler Automobiles (FCA), makers of the Jeep brand. The decision to pull out of the world’s fourth-largest automobile market has also put a near end to an American dream in India.

In early September, Ford Motors decided to end its India operations after piling up a debt of over $2 billion, making the Detroit-headquartered automaker’s India operations unsustainable.

Now, 25 years later, one has gone on to become India’s second-largest carmaker, while the other has shut shop. The auto industry bets its future on batteries

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