Ford to shut manufacturing plants in India and suffer $2 billion hit
Gulf Today|September 10, 2021
The US carmaker entered India 25 years ago but still has less than 2 per cent of the passenger vehicle market having struggled for years to win over Indian consumers and turn a profit
Ford to shut manufacturing plants in India and suffer $2 billion hit

NEW DELHI

Ford Motor Co will stop making cars in India and take a hit of about $2 billion because it does not see a path to profitability in the country, becoming the latest automaker to leave the major growth market dominated by Asian rivals.

The US carmaker entered India 25 years ago but still has less than 2 per cent of the passenger vehicle market having struggled for years to win over Indian consumers and turn a profit.

Ford said in a statement on Thursday that it had accumulated operating losses of more than $2 billion in 10 years in India and demand for its new vehicles had been weak.

“Despite (our) efforts, we have not been able to find a sustainable path forward to long-term profitability,” Ford India head Anurag Mehrotra said in the statement.

Ford’s decision to cut its losses in India after leaving Brazil earlier this year underscores the pressures on global automakers to invest more in electric and automated vehicles, as well as connected vehicle technology.

Global automakers once fought to maintain a presence in every major market and were willing to lose money to do so.

This story is from the September 10, 2021 edition of Gulf Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the September 10, 2021 edition of Gulf Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM GULF TODAYView All
Bayern's bid for 10th German League title boosted by rivals' disarray
Gulf Today

Bayern's bid for 10th German League title boosted by rivals' disarray

Bayern are cruising unbeaten at the top of the league table under new coach Nagelsmann and their challengers from last season are in disarray. They have won their last nine matches in all competitions and scored at least three goals in each game

time-read
3 mins  |
October 01, 2021
Pakistan Pavilion at Expo spotlights Balochistan
Gulf Today

Pakistan Pavilion at Expo spotlights Balochistan

Visitors will get to see the strides women in Pakistan have made and the importance of their development

time-read
3 mins  |
October 01, 2021
Defence cooperation between UAE, Pakistan grows stronger
Gulf Today

Defence cooperation between UAE, Pakistan grows stronger

Sheikh Mohamed and General Bajwa discussed relations of friendship and joint coordination between the two countries in defence and military affairs

time-read
3 mins  |
October 01, 2021
England's Buttler reiterates to pull out of Ashes tour if not allowed to meet family in Oz
Gulf Today

England's Buttler reiterates to pull out of Ashes tour if not allowed to meet family in Oz

But whether the wicketkeeper-batsman also features in the five-Test Ashes series is open to doubt amid questions over the severity of COVID-19 restrictions confronting Joe Root’s men in Australia

time-read
3 mins  |
October 01, 2021
Balmain celebrates ten years with designer at Paris Fashion Week
Gulf Today

Balmain celebrates ten years with designer at Paris Fashion Week

An emotional recorded message by Beyonce opened the evening show, paying tribute to the French designer who she said strove to put diversity at the heart of his fashion

time-read
2 mins  |
October 01, 2021
Brazil's Palmeiras Advance To Copa Libertadores Final Again
Gulf Today

Brazil's Palmeiras Advance To Copa Libertadores Final Again

BELO HORIZONTE: Defending champions Palmeiras booked their place in the final of the Copa Libertadores on Tuesday, securing a batling 1-1 against Brazilian rivals Atletico Mineiro to advance on away goals.

time-read
2 mins  |
September 30, 2021
Chennai Look To Tighten Grip On Top, Hyderabad To Play For Pride
Gulf Today

Chennai Look To Tighten Grip On Top, Hyderabad To Play For Pride

Chennai are siting at the top of the standings with 16 points, having won eight of their ten matches. They are in stupendous form and have been unbeaten in the UAE leg of the tournament. CSK have notched up three victories on the trot to maintain their stranglehold on the summit

time-read
3 mins  |
September 30, 2021
Britain Deploys Soldiers To Deliver Fuel, Says Official
Gulf Today

Britain Deploys Soldiers To Deliver Fuel, Says Official

Petrol stations’ union says only 27% reported being out of gasoline while taxi drivers say there appeared to be little signs of the situation improving

time-read
3 mins  |
September 30, 2021
Cabinet Ministers Of UAE Sworn In At Qasr Al Watan
Gulf Today

Cabinet Ministers Of UAE Sworn In At Qasr Al Watan

The ministers expressed their appreciation for the trust of the leaders of the UAE

time-read
3 mins  |
September 30, 2021
Expo 2020 Star-Studded Opening Ceremony Will Mesmerise World
Gulf Today

Expo 2020 Star-Studded Opening Ceremony Will Mesmerise World

Opening ceremony viewing parties will take place across the country

time-read
4 mins  |
September 30, 2021