Explained: Why Ford Left India? Reason Behind The Final Goodbye

US-based Ford motors is known for its powerful machines and it’s undoubtedly one of the most loved and trusted automakers in India. But do you know Ford has left India? Yes, you heard it right, Ford Motors has said goodbye to India. What’s the reason for their exit from Indian markets?

In September 2021, Ford took the decision to leave India after Humuhumu’s operating losses of over $2 billion. Not only the huge operating losses, the company was also suffering from low vehicle demand, which is definitely not sitting right with its operating model.

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So, it’s not rocket science to guess that the falling profitability due to large operating losses and weak demand in the market, was the major reason behind why Ford left india. The company was also finding it hard to find a sustainable path forward for a long-term profitability plan, so it was better for them to just stop all their operations in the country.

This was not the first time Ford Motors has stopped its operations in India. Previously, in 1953, Ford decided to pull out of the Indian market due to severe import restrictions that had led to an increase in the cost of production.

Ford then returned to Indian markets in October 1995 as Mahindra Ford India Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra Limited. For the unversed, initially Ford started its production in India in 1926 as a subsidiary of Ford Motor Company Of Canada.

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There were some rumors in early 2022 that Ford could resume its production in India. However, none of those turned out to be true yet…

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