The Exit of Ford in India 2022

Abstract

The purpose of this inspection is to highlight Ford’s success and failure in India, which made the company decide for closing two manufacturing plants in Gujrat and Chennai in India. Ford is the world’s fifth-largest automobile manufacturing company that has already succeeded in operating a decentralized market with its strength of performance and engine power. However, in India, Ford first entered in 1952 to supply bus and lorry chassis to Simpson & Corporation in Chennai, which later merged with Mahindra and Mahindra group in 1995. In several successful models that achieved greater success in the different markets were introduced in India by this collaboration. In addition, the company also shows interest in Indian Market, which made the operation chief invest over $2 billion to earn a more significant profit. However, in general inspection, it was evaluated that the company has prior the rest in fulfilling commitments, executing better customer service and introducing a bag of features over the last 27 years of ruling in this specified market. In return, the financial statements manifested that unprofitable revenues are achieved from Indian market. Thus, it is specified that the company is lacking in breaking the code of the Indian automobile market, with these approaches. Ford decided to exit the manufacturing process in India, due to which the Sanand plant in Gujrat stopped their operation from the 4th quarter of FY2021,and also closed the engineering plant in Chennai by FY2022. Whereas on the other, side the company is trying to bring new high-end models from abroad to continue their marketing expectation in this country as a CBU.

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