Ford India recently announced to withdraw its business from India. Now the rest of the car makers are eyeing Ford’s business acquisition. Ford of America has decided to stop local manufacturing in India. The company will stop manufacturing at its Sanand plant in the last quarter of 2021. At the same time, the Chennai plant will stop manufacturing in early 2022.
According to a new report, talks are going on between Kia Motor India and Ford, which are still in their early stages. However, no official statement has come from both the companies regarding this yet. While Ford has been in the Indian market for almost three decades, Kia has entered the Indian market in the year 2019. The talks between the two companies are in the early stages and the outcome of the talks could be very interesting for the Indian market.
Last week, Ford decided to stop car manufacturing in India, taking a loss of $2 billion. Earlier, General Motors Company and Harley Davidson Inc. have also closed their factories in India. Now the foreign auto companies present in India are Nissan Motor Co Ltd of Japan and Volkswagen AG of Germany. Volkswagen is the largest auto company in the world by sales. They have less than 1 per cent share in the Indian car market.
Ford and Hyundai entered India together. Hyundai entered the Indian market with its small and affordable car Santro while Ford launched the Escort saloon. It was first introduced in Europe in the 1960s. Indian customers accustomed to buying Maruti cars were stunned to hear the cost of escort. According to Ammar Master, analyst at LMC, Ford’s EcoSport and Endeavor were the best selling vehicles but the company did not have many models to cash in on this appeal.