Ford’s Exit From Indian Market to Cost It WHOPPING Rs 5,000 Crore

Ford has injected Rs 5,000 in India post exiting the market. This seems a bit weird that why would the company inject Rs 5,000 Crore in a country where it has recently ceased all manufacturing. It has just been a month since Ford decided to produce no more cars in India. It essentially left the country almost 25 years after it began. Although, Ford has decided to continue as a niche player with imported products. This will include the likes of Ford Mustang, Mach-E and Ranger/Raptor pick up trucks. The American carmaker announced that it has lost $2 Billion in the Indian market. The breakup of the Joint Venture between Ford and Mahindra is touted as the final nail in the coffin for Ford.

Also read: LEAKED! Ford India’s C-SUV Looked Better Than Mahindra XUV700, Caused JV Breakup

Ford Injected Exiting India

Ford Injected Rs 5,000 Crore After Exiting India

It has been trying to sell its two manufacturing facilities in India. After the JV deal with Mahindra fell through, it approached other carmakers in the country to sell the manufacturing setups. However, none of those deals were done. Hence, there was no option left for Ford but to cease operations altogether. Now, Ford invests Rs 5,000 Crore in its Indian business. But why?

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Well, the answer is relatively simple although it seems otherwise. Ford has to payout its vendors and dealers in the country. Ford had a staff of about 4,000 people in India. This money will be used to provide some relief to these employees and clear the dues. Ford also has to take into account the warranty it offers to its existing customers. It must not be forgotten that Ford has almost a million customers in Inda. It can’t simply pack up and leave. The Ford car owners in the country are worried out of their wits about the future of service and maintenance of their vehicles. Ford has promised to continue offering services to the customers, however, the ground reality is a bit different. Many Ford dealerships are already shut down and more will follow in times to come. Apart from the big cities, it won’t be easy for the customers to find official service centres. Rs 5,000 Crore that Ford injected into our market after exiting India could go towards that as well.

Also read: Pics of Last Ford Car Produced in India Leave Us Teary-Eyed!