Gone too soon

Ford India has halted manufacturing and sales but we can expect CBUs in the future

THE MUSTANG MACH-E WILL MAKE ITS WAY

HERE

FORD HAS CONFIRMED THE NEWS that has been doing the rounds in the rumour mills for some time — it is halting manufacturing of cars in India. This means locally-made cars such as the Endeavour, EcoSport, Figo, Aspire, and Freestyle will no longer be available in India. However, it is important to note that Ford India is not quitting India entirely. It will still be present here but how it does business in the country is going to change quite significantly.

So what is really happening at Ford India? Well, manufacturing of cars for India was stopped with immediate effect, while cars for export from the manufacturing plant in Sanand will be wrapping up operations by the end of this year. Meanwhile the engine and vehicle assembly plant in Chennai will wrap up operations by mid 2022.

However, Ford India say it will continue to manufacture engines for export at the Sanand engine plant. What does this mean for existing owners? Well, Ford has said that they will provide existing customers with parts, service and warranty support. Additionally, Ford India is now shifting their focus towards expanding Ford Business Solutions as part of the Ford+ plan, which will help create job opportunities for people in engineering, science, R&D, and finance. As for car sales, Ford has confirmed that it will import its high-end cars as CBUs and sell them in India ― confirming the launch of the Mustang and the Mustang Mach-E in the future. These cars will also receive full support with parts, service and warranties from Ford.

There are far too many reasons behind the demise of Ford India, the biggest of them perhaps being piling up on losses worth more than USD 2 billion in the last decade, followed by a write-down of non-performing assets worth USD 0.8 billion in 2019.

The fact that they had no upcoming new models was a major factor ― the Fiesta was dead by 2015, the EcoSport pioneered the compact SUV segment but has been virtually unchanged since its launch, save for a few facelifts. The lack of an affordable product in the entry-level segment also possibly dented Ford’s hopes in India. The Figo is still a premium hatch and is out of reach for a huge chunk of buyers. Ford simply couldn’t penetrate the Indian market, dominated by the likes of Maruti and Hyundai. The final nail in the coffin was failing to find a partner in their last few days ― Mahindra crushed Ford’s hopes of getting back together by walking out, and others such as MG and Ola weren’t interested.

Ford has made some great drivers’ cars over the years, and it’s a pity that its story in India is coming to a close. The fact that it hasn’t quit India entirely should give their large customer base in the country some comfort. In the meantime, all we can look forward to is the fancy metal it will be importing in the future.