Nishmanya Bahadur
Ford As early as 1994, it became one of the first multinational automobile companies to enter our market. Now, 27 years later, the American automaker is stopping production of cars and SUVs in India. However, the brand will continue to operate and sell imported CBU models.
- Ford closes Sanand and Maraimalai Nagar plants
- Export business will also stop
- Ford will continue to make niche imports in India
Why did Ford stop production?
Ford closed its manufacturing operations in Sanand and Maraimalai Nagar, India, for a variety of reasons, but the key reason was that the plant’s capacity utilization rate was unsustainably low. The combined annual production capacity of the two plants is 400,000 vehicles, but recently Ford can only produce 80,000 vehicles (20% of production capacity), half of which are for export.
Such low production figures and the fact that the Sanand plant was originally built to meet Ford’s global standards meant that the cost of producing cars for our market at this plant was too high.
In contrast, the Maraimalai Nagar plant can indeed achieve more cost-effective manufacturing. However, even if this single plant is maintained, Ecological sports with Forge ahead– The two most popular models of the brand – have been manufactured and are not financially viable. This is especially true when you consider Ford’s outdated Indian product line, low demand for its range, and lack of any new mass market models.
What does this mean for Ford’s exports from India?
Ford will completely shut down its manufacturing facilities, so it will not produce models only for export. This does mean that the automaker will no longer use India as a manufacturing center for exports to other regions. However, Ford will complete all pending orders before ending operations.
Does Ford have other options to continue in India?
In order to continue producing cars in our market, Ford’s only realistic option is to establish a partnership or joint venture (JV) with another car manufacturer in India.The American automaker even established a joint venture with Mahindra & Mahindra October 2019. However, this deal Closed soon on December 31, 2020In view of the fact that the joint venture has been in preparation for nearly three years, Ford has made many future plans around it. This is counterproductive for Ford because without a joint venture, it will have no new models in the near future, and the factory continues to be underutilized.We recently did Analyze the difficult future facing Ford in India, We introduced its situation and options in more detail.
What is Ford’s future in India?
For Ford enthusiasts there, all hope has not been lost in the future, and Ford will still have a place in India. However, the automaker will mainly focus on importing niche models rather than mass market products, as it does in Australia and Brazil.This means that Ford can focus on launching things like Mustang, Bronco, other electric cars, even like Ranger Pickup Truck The automaker has developed a plan to go public in India.
See also:
The Mustang is coming?
Ford Figo automatically launched priced at Rs 775,000
