In October 2019, Mahindra and Ford announced a joint venture that would see Mahindra acquiring a majority stake in the American carmaker’s operations here. Because of multiple reasons, the two carmakers decided to end the joint venture by the 2020 year-end. On 9th September 2021, the automaker Ford decided to end its operations in India. Ford explained the reason for the shutdown is losses – of approximately $2 billion.
- As per the reports, industry experts pointed out Ford had a sub-standard poor product pipeline in India, which is under 20% of the company’s manufacturing capacity in the country. Even, the company’s exports from India were also declining. Unfortunately, Ford company did not seems to have Plan B to deal with issues
- Another factor for Ford’s struggles in India was the lack of products.
- Ford didn’t have the volume. In 2020-21, the company sold a meagre 48042 units. Whereas, Maruti Suzuki sold about 1.1 million units in the same duration.
- Meeting stricter emission norms would require Ford to make a sizeable investment, but it is difficult for the American carmaker because of increased losses in India.