Ford Motor will no longer manufacture cars in India and will suffer a financial impact worth about 2 billion dollars, as it does not consider that it can be profitable in this country, News.ro announces. The US carmaker is thus joining other vehicle manufacturers who have decided to leave this fast-growing market, which is dominated by Asian rivals, Reuters reports.
The US carmaker entered the Indian market 25 years ago, but has a 2% share of the passenger car market, even though it has been trying for years to attract Indian consumers and make a profit.
Ford said in a statement on Thursday that it had accumulated more than $ 2 billion in operating losses in India over 10 years, and demand for its new vehicles was weak.
“Despite our efforts, we have not been able to find a solution for long-term profitability,” said Ford India CEO Anurag Mehrotra.
Ford’s decision to cut losses in India after retiring from Brazil earlier this year highlights pressure on carmakers to invest in electric and autonomous vehicles, as well as in technology for connected vehicles.
In the past, car manufacturers have tried to maintain a presence in all major markets, being willing to lose money to do so.
Photo source: Ford.com