Ford Motor has become the third US vehicle manufacturer to shut manufacturing operations in India, after General Motors and motorcycle manufacturer Harley Davidson.
Ford, the world’s fifth largest carmaker, was one of the first major global auto brands to enter India after reforms opened up one of the world’s fastest growing automobile markets to global players. Starting in 1996 with an initial investment of $ 1 billion, the iconic US auto giant has so far invested over Rs 12,800 crore in India.
It has two manufacturing plants in India in Sanand in Gujarat and Maraimalai Nagar in Tamil Nadu. At its peak, it had over 14,000 employees in India. However, despite struggling for 25 years, it has failed to make headway in the highly competitive Indian market. Its market-share never crossed the low single digits and at the time of its exit, its share was reportedly down to under 0.5 per cent.
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Ford’s tumultuous stint in India and its inglorious exit is a cautionary tale for global manufacturers looking to break into the Indian market. Ford consistently failed to read the market and the Indian consumer correctly. Under the mistaken assumption that the Indian market was driven entirely by cost considerations, it brought in a series of outdated designs and technologies which failed to enthuse the buyer.
Ford’s tumultuous stint in India and its inglorious exit is a cautionary tale for global manufacturers looking to break into the Indian market. Ford consistently failed to read the market and the Indian consumer correctly. Under the mistaken assumption that the Indian market was driven entirely by cost considerations, it brought in a series of outdated designs and technologies which failed to enthuse the buyer.
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