Ford Motor said it is closing manufacturing operations in India and plants at Sanand and Chennai due to massive losses and lack of growth in the market. Ford will end the manufacturing of vehicles for exports in Sanand, Gujarat by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022, a statement said. Due to operating losses of over $2 billion in the last ten years, Ford is required to do a restructuring to do a profitable business in India, the company added.

Jim Farley, CEO of Ford Motor, said, “As part of our Ford+ plan, we are taking necessary actions to do a profitable business and allot our capital to grow and generate value in the right areas. Even after investing significantly in India, Ford has got losses of over $2 billion in the past ten years, and demand for new vehicles has decreased.”

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The company said it took these restructuring steps after examining many options, including partnerships, platform sharing, contract manufacturing, and even selling its manufacturing plants. “Despite these attempts, we have not been able to find a path to long-term profitability that includes in-country car manufacturing. The decision was taken after years of losses, industry overcapacity, and absence of expected growth in India’s car market,” Anurag Mehrotra, President and managing director of Ford India, said.