Introduction

Ford India Private Limited, a subsidiary of Ford Motor Company, played a significant role in the Indian automotive landscape until its exit in 2021. Let's delve into the history, manufacturing facilities, models, and the eventual exit of Ford from the Indian market.

Exit from Indian Market

On September 9, 2021, Ford officially exited the Indian market due to an inability to keep up with the competition and various global economic factors leading to reduced demand. In August 2022, Ford announced the sale of its manufacturing plant in Gujarat to Tata Motors for INR 7.26 billion.

History of Ford in India

Ford's association with India dates back to 1926, with the establishment of Ford India Private Limited. However, due to import restrictions, the company liquidated in 1953. Ford re-entered the Indian market in 1995 as Mahindra Ford India Limited and later became Ford India Private Limited in 1998. The total investments by Ford Motor Company in India amounted to $2 billion as of April 2012.

Manufacturing Facilities

Ford India's main manufacturing plant in Maraimalai Nagar, Chennai, had the capacity to produce 150,000 cars (expandable to 200,000) and 330,000 engines annually. The company also invested in a state-of-the-art manufacturing plant in Sanand, Gujarat, inaugurated in 2014. However, in September 2021, Ford announced the cessation of domestic manufacturing in India.

Models Launched

Ford introduced various models in India, including the Escort, Ikon, Endeavour, Fusion, Fiesta, Figo, EcoSport, and others. The EcoSport, taking advantage of government policies, became a significant player in the sub 4-metre automobile category.

Sales Performance

Ford's sales performance in India saw notable growth, with a sales growth of 172% in 2010. However, market share fluctuated over the years, reaching a peak of 3.32% in 2012. In 2020, Ford recorded sales of 66,415 vehicles with a 2.39% market share.

Exports and CSR Activities

Ford India contributed to exports, sending 40% of its engine production and 25% of its car production to 35 countries, including the United States, Canada, Mexico, and various African nations. The company actively engaged in corporate social responsibility, focusing on road safety, education, healthcare, and the environment.

Future Plans and Electric Vehicle Initiative

In February 2022, Ford expressed its intention to re-enter the Indian market as an electric vehicle maker. However, in May 2022, these plans were indefinitely scrapped.

Conclusion

Ford's journey in India, marked by highs and lows, contributed significantly to the country's automotive industry. While the company faced challenges leading to its exit, its legacy and impact on the Indian automotive landscape remain noteworthy.