As per the report published by Reuters, Ford Motor Company (F.N) has planned to stop all its operations and close the production plants in India. This decision will make the latest auto manufacturing company abandon a market populously reigned by its competitors across Asia.
The news thread reported that to execute the same at least one year will be required. This announcement fleets in after the automaker witnessed dipping profits profitable in the Indian market. Ford gridlocked its production in India, after prominent U.S. companies like General Motors and Harley Davidson who have ceased their operations, had initially guaranteed an exponential growth.
Ford has worked hard to impress India’s penny-pinching buyers and gain a good turnover in a low-cost, budget-friendly market ruled by Suzuki Motor Corporation and Hyundai Motor. However, the automaker will continue its partial operations in India by importing fully-built vehicles to its group of customers.
It earlier said it would decide on a capital allocation plan for India in the second half of 2021. The company further told Reuters that it will allocate capital consistent with its plan to generate consistently strong cash flow and achieve an 8% company adjusted EBIT (earnings before interest and tax) margin.
Ford arrived in India 25 years ago, however, possess merely a 2% share of the passenger vehicles in the country.