New Delhi: US auto major Ford Motor is going to shut its two manufacturing plants in India in Chennai (Tamil Nadu) and Sanand (Gujarat).


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Ford entered India 25 years. It has a less than 2% share of the passenger vehicles Indian market which is dominated by automotive companies like Suzuki Motor Corp and Hyundai Motors.



“Ford Restructures India Operations: To cease vehicle manufacturing in Chennai & Sanand; Progressively wind-down manufacturing of vehicles for export at Sanand plant by Q4 2021 & Chennai engine/vehicle assembly plants by Q2, 2022; To continue engine manufacturing for export,” tweeted Ford. (Also read: Ola S1, S1 Pro electric scooter online sale postponed due to technical glitch)



What happens to Ford Cars in India?



Ford sells 5 car models in India that range from hatchback, SUV and Sedan. The current decision implies that Ford will stop selling vehicles such as the EcoSport, Figo, Aspire, Endeavour and Freestyle which are produced from these plants.


Meanwhile, responding to users, the US based car company has said that it is not exiting the country. (Also read: Maruti's 4 best-selling cars launching soon in a new avatar –Details here)


“Ford is NOT leaving India. The changes we have announced today are designed to create a new, asset-light business model, which is sustainably profitable in the longer term,” Ford responding to several users on Twitter wrote.



Ford will sell only imported vehicles in the country as part of a restructuring exercise. Going ahead, it would only sell imported vehicles like Mustang in the country.


Ford is the latest vehicle maker to cease production in India, following US companies such as General Motors and Harley Davidson, which have already left a market that had once promised exponential growth.


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