Ford to end production of its vehicles in India
- American carmakers continue to retreat on their home market. After GM stopped its production in India (Chevrolet Spark) at the end of 2020, it is now Ford's turn to announce the closure of its plant in India before the end of the year 2021. Ford currently produces Figo, Ecosport, Endeavor and Freestyle models at the Chennai plant. In 2020, 110,878 vehicles were assembled in this plant, including 85,007 Ecosport which was the most produced model. Over the first seven months of 2021, there are still 52,643 vehicles produced, including 37,555 Ecosport. Ford represented only 3% of the Indian production in 2020 and only 2% in 2021, which almost corresponds to its market share.
- The announcement follows the shutdown of the Ford plants in Australia, Brazil and Russia. India is the fifth largest market in the world after China, the United States, Europe and Japan, but that did not seem to have played a role in Ford's decision. Ford says it will supply the overseas Indian market despite heavy import taxes. However, we can see a clear desire by Ford to pull back in North America, which is the reverse of an expansionary plan as the North American market is already saturated. There are many brands present in this market.
- The Ford group has been declining steadily since the 2000s. From being the second largest carmaker in the world until the early 2000s, the Ford group suddenly dropped out and fell to sixth place in 2010 and then to seventh in 2020. The sale of Volvo, Jaguar, Land Rover brands and the elimination of Mercury accelerated the decline of the former world's second-largest carmaker.
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