NEW DELHI: Ford Motor Co (F.N.) to stop manufacturing cars in India citing accumulated losses of more than $ 2 billion in the last 10 years.
The United States-based car manufacturing giant Ford entered India 25 years ago but still has less than 2% of the passenger vehicle market having struggled for years to win over Indian consumers and turn a profit.
In a statement released, Ford stated that it had accumulated operating losses of more than $2 billion in 10 years in India and demand for its new vehicles had been weak.
“Despite (our) efforts, we have not been able to find a sustainable path forward to long-term profitability,” Ford India head Anurag Mehrotra said in the statement.
Ford’s decision came as another major setback for Indian Prime Minister Narendra Modi’s “Make in India” campaign.
India was expected to become the world’s third-largest car market by 2020 after China and the United States with sales of some 5 million vehicles a year. Instead, sales have languished at about 3 million, still trailing Europe and Japan too.
Ford also stopped manufacturing cars in Brazil earlier this year.
Support our brand of fearless and investigative journalism: