Ford Decides To Shut Manufacturing In India; Will Resale Be Affected?

Mumbai: Ford has finally decided to wrap up its two Indian plants, becoming the 3rd American automobile company to do so in recent years after General Motors and Harley Davidson.

Sources told Reuters that it was not profitable for Ford to continue in India. The company has borne losses of over $2 billion in the last decade. Earlier, the company tried to tie up with other carmakers such as Mahindra, MG and others. The joint-venture with Mahindra fell through after an interesting plan to develop 7 SUVs had come up.

Also Read: Ford And Mahindra Decide To Call Off Joint Venture

Ford will be continuing to sell cars in India via imports. It is important to note that imports attract very high customs duty and is mainly suitable for luxury cars.

What about service?

Ford says service will not be impacted as they are not quitting India completely.

Will resale of Ford cars be affected in India?

Traditionally, the resale value of manufacturers who stopped factories or operations here have taken a big hit.

Which Ford cars will be available?

The current line-up (Ecosport, Figo, etc) will most likely not be sold anymore as plans for new updates of the cars have been shelved. However, it will be selling the Mustang and Endeavour, and is planning to import other products.

It is interesting to note that Ford was one of the first foreign automobile makers to manufacture cars in India in the late 90s starting with the Ford Ikon.

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