Ford to shut down both its manufacturing plants in India, car owners should read this

New Delhi: US auto major Ford Motor Co will shut its two manufacturing plants in India that is situated in Chennai (Tamil Nadu) and Sanand (Gujarat), as per several news agency reports.

This means that the company will stop selling vehicles such as the EcoSport, Figo and Aspire which are produced from these plants.

Ford has not made any formal announcement yet. Ford made the decision because it was not profitable for it to continue while the process is expected to take about a year to complete, said Reuters quoting its sources.

Ford is the latest vehicle maker to cease production in India, following US companies such as General Motors and Harley Davidson, which have already left a market that had once promised exponential growth.

Ford will sell only imported vehicles in the country as part of a restructuring exercise. Going ahead, it would only sell imported vehicles like Mustang in the country, reported PTI.

Ford India has an installed manufacturing capacity of 6,10,000 engines and 4,40,000 vehicles a year. It also exported its models such as Figo, Aspire, and EcoSport to over 70 markets around the world. In January this year, Ford Motor Co and Mahindra & Mahindra had decided to scrap their previously announced automotive joint venture and instead chose to continue independent operations in India.

Ford entered India 25 years. It has a less than 2% share of the passenger vehicles Indian market which is dominated by automotive companies like Suzuki Motor Corp and Hyundai Motors.