Ford has announced that it will stop the production of cars and SUVs in India immediately. The brand will however continue operations by selling CBU models in the Indian market.
Ford is set to shut both its plants in India. The Sanand plant that was used to produce vehicles for export will wind up by Q4 2021. The Chennai plant used for engine and vehicle production will shut down by Q2 2022. The car maker will be working to care for those employees, dealers and suppliers who will be affected by this move.
Sales of current products such as Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold. However, Ford will continue to offer customer support operations for these vehicles with service, aftermarket parts and warranty coverage. Ford India will maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata and will work closely with its dealer network to restructure and help facilitate their transition from sales and service to parts and service support.
Moving forward Ford will still have a presence in India. The car maker will bring niche CBU models from their global portfolio to India. These models could include the Mustang, Bronco, Ranger pick up and even the Mustang E electric.
Ford had earlier announced a JV with Mahindra to produce cars and SUVs, sharing platforms but the deal fell through in December 2020. This could be significant reason for ceasing local production as there were no new local models on the horizon and the plants were being under utilized.
