Ford India to Sell Just Endeavour as Capacity Utilization Falls to 20%?

Ford Motor Company is one of the oldest and also one of the most reputed car manufacturers in the world. Ford was established in the year 1903 and the company entered the Indian market in the year 1995. Ever since Ford entered the Indian market, the American carmaker has invested billions of US Dollars in our country but now it seems that Ford might bid us adieu as the company might sell its Indian manufacturing plants. Here, we have all the latest news about Ford India and its future plans for the Indian market.

Ford Approaches Rivals To Revive India Operations

According to the latest media report, Ford Motor Company has approached several rival automakers to sustain its 25-year operations in India after its failed joint venture deal with Mahindra & Mahindra. As per reports, Ford has approached at least half a dozen auto manufacturers which include the likes of Tata Motors, upcoming Changan Automobiles, Skoda-Volkswagen Group, MG Motors, Hyundai Motor India Private Limited and even some new-age electric vehicle startups like Ola Electric to explore partnerships, contract manufacturing opportunities, or even sale of one of its facilities. 

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As per some media reports, Ford is considering these options as it is looking to achieve sustainability. Also, the company is looking for ways to attain the mid-term target of 8 per cent EBIT (earnings before interest & taxes) margin by 2023 which has been announced by its global CEO Jim Farley. Now, as we all know, Ford's Indian portfolio is dated with small cars like Figo, Aspire & Freestyle while the EcoSport and the Endeavour are only selling in decent numbers. As of now, Ford has two manufacturing plants in India, one of them is in Chennai, Tamil Nadu and the other one is in Sanand, Gujarat.

Now, since the export volumes of the company are failing massively, so Ford is reportedly sure to shut or sell one of its manufacturing plants in India. As per reports, in the worst-case scenario, Ford might shut both its plants and turn its Indian unit into a niche operation. Ford might then sell only CKD (completely knocked-down) versions of premium models like Endeavour, Ranger, and Mustang in India and in future some EVs too. The main reason for Ford's current status in India is said to be the failed partnership with Mahindra & Mahindra. Ford started having discussions with Mahindra in 2017 to explore partnership on sharing products, manufacturing plants and future technologies. Then, Ford and Mahindra formed a joint venture in the second half of 2019 but the JV was then called off on December 31, 2020. It must be noted here that the carmaker's plant capacity utilisation has fallen to just 20%. With the EcoSport bound to bow out US market in 2022, it makes little sense for the carmaker to continue manufacturing the product for a demand of less than 5,000 units month.

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What Does Ford India Say In This Matter?

According to the same news outlet, a Ford India spokesperson said that the company would not like to comment on 'speculations'. Ford's spokesperson further added, "India is an important market for Ford, with more than 16,000 employees, as well as being a source of our global powertrains for Ranger. We are continuing to assess our capital allocations and expect to have an answer in the second half of the year. We have nothing additional to share at this point." What do you think Ford's will be the next move for India? Do feel free to share your thoughts with all of us in the comments below. You can also join our 91Wheels Auto Enthusiast Telegram group (click via mobile to join) curated exclusively for the fans, enthusiasts and owners. Further, subscribe to our YouTube channel for more amazing motoring updates.

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