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Ford India

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Ford India Private Limited
Company typeSubsidiary
IndustryAutomotive
FoundedOctober 1995 (as Mahindra Ford India Limited)[1]
Defunct9 September 2021
HeadquartersSholinganallur, Chennai, Tamil Nadu[2]
ProductsAutomobiles
Number of employees
10,000
ParentFord Motor Company
Websiteindia.ford.com

Ford India Private Limited was a subsidiary of Ford Motor Company for its operations in India. Ford India Private Limited's headquarter were located in Sholinganallur, Chennai, Tamil Nadu. Ford also had operated integrated manufacturing facilities in Sanand, Gujarat.[3] On September 9, 2021, Ford exited the Indian market as it failed to keep up with the competition, and other global economic factors had led to reduction in demand.[4] On 8 August 2022, Ford announced it would be selling its manufacturing plant in the western state of Gujarat for INR 7.26 billion (approximately US$91.5 million) to Tata Motors.[5][6] Since 2021, Ford India has focused on the businesses of supporting a service network, import and distribution of automotive parts, and the sale of extended warranties.

History

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Ford Motor Co. Factory in India.

Ford India Private Limited began production in 1926 as a subsidiary of the Ford Motor Company of Canada. The initial Ford India company was liquidated in May 1953 as a result of severe import restrictions having been enacted.[7] Ford re-entered the Indian market in October 1995 as Mahindra Ford India Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra Limited. Ford increased its interest to 72% in March 1998 and renamed the company Ford India Private Limited.[8] The total investments made by Ford Motor Company since it set shop in 1995 stands at $2 billion as of April 2012.[9]

Ford launched several models in India, including the sixth generation European Ford Escort and the Ford Ikon, later followed by the Ford Mondeo (second generation). In 2003 Ford launched its first SUV - Endeavour. The first-generation Endeavour is based on the Mazda-based Ford Ranger pickup truck, while the second-generation model is based on the globally-marketed T6 Ranger. In late 2004 Ford launched the European Ford Fusion,[10] which brought a totally new segment to India - the crossover which the company called as an Urban Activity Vehicle & marketed in India as The-No-Nonsense-Car; going by its name, it was a very practical car way ahead of its time, and was popular mostly among enthusiasts.

Ford launched the Ford Fiesta in its sedan guise which was widely received in the market and was a sales success. Ford also launched the Ford Figo, based on the sixth generation Ford Fiesta hatchback in the Indian market.

With the Ford EcoSport crossover, Ford became one of the first companies to exploit the Indian government's policy of lower taxes for sub 4-metre automobiles. Ford also exports the EcoSport from India to EU and US markets. Ford then launched the second generation Ford Figo, first in its sedan guise as the Ford Figo Aspire, which now remains Ford's only sedan in the Indian market after discontinuation of the sixth generation Ford Fiesta. The Figo hatchback was launched at a later date. To fill the gap between the Figo and the EcoSport, the company launched the Ford Freestyle in 2018; this is essentially a crossover version of the face-lifted Ford Figo hatchback.

In 2019, the company started talks with Mahindra & Mahindra to establish a new joint venture, but as of April 2021, those plans had been cancelled.[11][12]

In September 2021, the company announced its intent to end all domestic manufacturing in India.[13] In December 2021 Kotak Mahindra Bank's finance unit Kotak Mahindra Prime purchased Ford Credit India's vehicle finance portfolio.[14]

Manufacturing facilities

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Ford India's main manufacturing plant located in Maraimalai Nagar, 45 kilometres (28 miles) from Chennai has a capacity to produce 150,000 cars on a two-shift basis and 200,000 with three shifts. In 2010–11, the company's yearly production crossed the 100,000 mark.[15]

As its new hatchback Figo was launched in March 2010,[16] Ford Motor Company invested $500 million to double capacity of the plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines annually.[17][18] The engine plant opened for operations in January 2010.[19] In 2012, the company invested a further $72 million to raise engine production capacity to 330,000 units.[20]

The company rolled out the Ford EcoSport in June 2013 with a $142 million investment. With the Ford EcoSport, the Chennai plant will ramp up to a capacity of 200,000 units.[21]

As part of its plan to launch 8 new vehicles by 2015, the car maker announced an intended investment of $1 billion for a new state-of-the-art manufacturing plant at Sanand, Gujarat on a 460-acre site. Installed manufacturing capacity was announced at 270,000 engines and 240,000 vehicles a year. The plant commenced production in 2014.[22] Once the plant was fully operational, Ford India estimated it would have a cumulative capacity to make 440,000 cars and 610,000 engines annually.[23] In May 2022, Tata Motors announced that it has signed an agreement to acquire a plant.[24]

In September 2021, the company announced it would cease production in India, citing growing losses and no sustainable path to profitability in the territory.[13]

In February 2022, Ford decided to returning to the Indian market as an electric vehicle maker,[25] but in May 2022 plans were scrapped indefinitely of this decision.[26]

After Ford's Chennai plant was closed, the workers union and Ford India negotiated for a severance package, in September 2022, Ford India presented its final severance package offer to the worker's union.[27]

Models

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Discontinued

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Model Released Discontinued Image Notes
Escort 1996 2001
Ikon 1999 2010
Mondeo 2001 2006 Imported
Endeavour 2003 2021
Fusion 2004 2010
Fiesta Classic 2005 2015
Figo 2010 2021
Fiesta (Global) 2011 2016
EcoSport 2013 2021
Figo Aspire 2015 2021
Mustang 2015 2021 Imported
Freestyle 2018 2021

Sales and service network

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As of April 2016, Ford has more than 376 sales and service outlets in 209 cities across India.[28]

Sales performance

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In the year 2010, FIPL recorded sales of 83,887 vehicles against 29,488 vehicles sold during the year 2009 and registered a sales growth of 172%.[29]

Calendar Year Sales Market Share
2010 83887 *
2011 96354 3.9%
2012 87600 3.32%
2013 80447 3.29%
2014 77157 3.06%
2015 77809 2.84%
2016 86607 2.95%
2017 87588 2.74%
2018 97804 2.92%
2019 73636 2.50%
2020 66415 2.39%

Exports

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Ford India exported 40 percent of its engine production and 25 percent of its car production to 35 countries. Some of them are: United States, Canada, Mexico, Saudi Arabia, South Africa, Nepal, Kenya, Bahrain, Angola, Bermuda, Ghana, Iraq, Liberia, Lebanon, Malawi, Madagascar, Mauritius, Nigeria, Senegal, Tanzania, UAE, Zambia and Zimbabwe.[30]

Corporate social responsibility

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Ford India's CSR activities are focused primarily in four key areas: road safety, education, healthcare, and environment.[31]

References

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  1. ^ "Ford U-Turns in India as Mahindra Tie-Up Shows Urgency to Profit". Bloomberg.com. 18 September 2017.
  2. ^ "Ford Plant and Corporate Office". Archived from the original on 13 December 2011. Retrieved 1 August 2011.
  3. ^ "Ford Company Profile".
  4. ^ "Ford wakes up badly burnt from its India dream". Reuters. 17 September 2021. Retrieved 18 September 2021.
  5. ^ "Jaguar Land Rover owner Tata Motors to buy Ford car plant in India". BBC News. 8 August 2022. Retrieved 8 August 2022.
  6. ^ "Tata Motors to buy Ford India's manufacturing plant for $91 million". Reuters. 7 August 2022. Retrieved 8 August 2022.
  7. ^ "Passenger Car Manufacturers", Ward's Canadian Automotive Yearbook 1955, Windsor, Ontario: Robert B. Powers, 1955, p. 27
  8. ^ "Ford India Pvt Ltd- about, dealers, models, plant location map and more".
  9. ^ "Ford drives into Sanand". Business Line. Retrieved 8 September 2012.
  10. ^ "Ford to launch Fusion in Dec — India's first 'crossover' car". Business Line. Retrieved 26 August 2004.
  11. ^ "Ford and Mahindra to end collaboration on all projects in India". CNBC. 1 April 2021. Retrieved 9 September 2021.
  12. ^ "Ford, Mahindra End Discussions for Auto Joint Venture | Ford Media Center". media.ford.com. Retrieved 9 September 2021.
  13. ^ a b "Ford to stop making cars in India". Reuters. 9 September 2021. Retrieved 9 September 2021.
  14. ^ Chaudhary, Smriti (22 December 2021). "Kotak Mahindra Buys Ford Credit India's Vehicle Finance Portfolio". BQ Prime.
  15. ^ "Ford looking to achieve full capacity; plans to expand soon".
  16. ^ "Ford Figo roll out by March 2010". Archived from the original on 5 February 2010. Retrieved 28 January 2010.
  17. ^ "Ford - Virtual Plant Tour". Archived from the original on 15 June 2011. Retrieved 28 January 2010.
  18. ^ "Ford India to export small cars from mid-2010". Archived from the original on 27 February 2009. Retrieved 28 January 2010.
  19. ^ "Ford India Engine Plant Rolls out 1,00,000th unit | Motoroids". 29 March 2011.
  20. ^ "Ford India increases engine capacity". Business Today. 18 July 2012. Retrieved 7 September 2012.
  21. ^ "Ford looking to achieve full capacity; plans to expand soon". Business Line. Retrieved 7 September 2012.
  22. ^ "Ford lays foundation for $1-b unit at Sanand". Business Line. Retrieved 7 September 2012.
  23. ^ "Ford India is changing the way its parent Ford Motor Company functions". Business Today. 23 February 2012. Retrieved 7 September 2012.
  24. ^ "Tata Motors looks to buy Ford India plant in electric vehicle push". Reuters. 30 May 2022. Retrieved 31 May 2022.
  25. ^ "Ford to come back into India as an electric vehicle manufacturer". 15 February 2022. Retrieved 27 March 2022.
  26. ^ "Ford makes U-turn, shelves plans for EV exports from India". Reuters. 12 May 2022. Retrieved 8 August 2022.
  27. ^ Balachandar, G. (5 September 2022). "Ford announces final settlement package for Chennai factory workers". www.thehindubusinessline.com. Retrieved 9 September 2022.
  28. ^ "About". india.ford.com.
  29. ^ "Ford Records Strong Sales Growth In 2010, Figo Caps The Year With Several Awards". Archived from the original on 20 March 2012. Retrieved 3 January 2011.
  30. ^ "Ford India begins bulk export of cars from Chennai". Archived from the original on 6 October 2014. Retrieved 28 January 2010.
  31. ^ "Ford India Private Limited 3Ci Score". 3Ci group. Retrieved 24 January 2016.
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