this document contains reasons why ford shuttting its manufacturing plants in india

1. Why US Carmaker Ford Motor Is Shutting
Manufacturing Plants In India ?
After operating for 25 years in India, American auto major Ford
Motor Co has decided to pull the plug on local manufacturing.
After operating for 25 years in India, American auto maker Ford Motor Co
has decided to pull the plug on local manufacturing. The US automaker said
that it would "take a hit of about $2 billion as it does not see a path to
profitability in India." The company, which has once tasted success with
models like Ikon, Figo and EcoSport, has currently a passenger vehicles
market share of less than 2 percent. Ford India will wind down operations at
its plant in Sanand in Gujarat by the fourth quarter (Q4) of 2021 and
vehicle and engine manufacturing in its Chennai plant by 2022.
Ford is the fifth automaker which has announced to stop manufacturing
in India after MAN Trucks, General Motors, Harley Davidson and UM
Motorcycles. Also, Honda Cars India shut its facility in Greater Noida,
Uttar Pradesh. The Japanese carmaker discontinued its CR-V and Civic
models in the country. However, Honda has another facility (Tapukara
plant) in Rajasthan which continues to be operational.
Here's why Ford decided to end manufacturing in
India:
Weak demand: Ford said it accumulated operating losses of more
than $2 billion in 10 years in India and demand for its new
vehicles had been weak. Ford India head Anurag Mehrotra said,
"Despite (our) efforts, we have not been able to find a sustainable
path forward to long-term profitability."
Low-cost cars: India's car market is mainly dominated by cars from Maruti
Suzuki India and Hyundai Motor India. Ford, on the other hand, struggled
for years to turn profitable in India. Ford and Hyundai entered India in the
mid-1990s. But the two companies have a complete different fate when it
came to business. While Hyundai turned into the country's second-largest
player and Ford is shutting down its manufacturing ops.

2. Failed JV effort: Ford and Mahindra & Mahindra
failed to finalise a joint venture partnership that
would have allowed the US auto major to continue
producing cars at a lower cost.
End of road for Mustang and Endeavour in India?
No, the US automaker stated that it will continue to sell some of its
high-priced cars in India (Mustang and Endeavour) through imports
and it will also provide support to dealers to service existing
customers.