Ford’s decision to stop manufacturing in no way reflects on biz environment in India: Govt source
PTI, Sep 10, 2021, 7:18 PM IST
A day after US auto major Ford made the surprise announcement of stopping vehicle manufacturing in India, a senior government source on Friday said the decision in no way reflects on the business environment in the country and is rather linked to operational issues.
The source, a senior functionary in the government who wished not to be identified, reasoned the shutdown decision to competition from Japanese and Korean carmakers.
Ford Motor Co on Thursday announced it will shut its two manufacturing plants in India and sell only imported vehicles in the country, as part of a restructuring exercise.
Ford, which invested about USD 2.5 billion at its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, will stop selling vehicles such as the EcoSport, Figo and Aspire, which are produced from these plants.
”India’s automotive growth story is alive and growing both in domestic and export markets. Ford’s exit is related to possible operational reasons and does not in any way reflect the story of the Indian automobile sector or business environment in India,” the source said.
Explaining further, he said the COVID-19 pandemic may have impacted sales volumes.
”More than USD 35 billion investments have come in India during the last six years. The automotive sector continues to attract billions of dollars in investment,” the source added.
Ford India has an installed manufacturing capacity of 6,10,000 engines and 4,40,000 vehicles a year. It also exported its models such as Figo, Aspire, and EcoSport to over 70 markets around the world.
Ford is the second American auto major after General Motors to shut plants in India.
In 2017, General Motors had said it will stop selling vehicles in India as there was no turnaround in its fortunes here even after struggling for over two decades to make a mark. Total sales of passenger vehicles stood at 11.42 lakh during April-August this fiscal as compared to 10.91 lakh in the same period of 2019-20.
Commenting on the August 2021 sales data, SIAM Director General Rajesh Menon said, ”Looking at the cumulative sales from April to August 2021, the passenger vehicle segment is still below the level of 2016-17.”
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Air India to offer integrated aircraft maintenance engineering programme
Markets stage sharp recovery; Sensex reclaims 79k level, Nifty surges 557.35 points
Baku climate talks: The ‘X’ factor that could determine future of Global South
Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial
Gautam Adani charged in US with USD 250 mn bribery, fraud
MUST WATCH
Latest Additions
Air India to offer integrated aircraft maintenance engineering programme
Awards don’t create value for independent films in India: Manoj Bajpayee
Karnataka bypolls: Outcome crucial for both ruling and oppn camps
Belagavi: Was youth killed for an iPhone? Police launch intensive probe
K’taka Health Minister calls for collaborative efforts to combat Antimicrobial Resistance
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.