Indian subsidiary of Ford
Ford India Private Limited
was a subsidiary of
Ford Motor Company
for its operations in India. Ford India Private Limited's headquarter is located in
Sholinganallur
,
Chennai
,
Tamil Nadu
. Ford also had operated integrated manufacturing facilities in
Sanand
, Gujarat.
[3]
On September 9, 2021, Ford exited the Indian market as it failed to keep up with the competition, and other global economic factors had led to reduction in demand.
[4]
On 8 August 2022, Ford announced it would be selling its manufacturing plant in the western state of Gujarat for INR 7.26 billion (approximately US$91.5 million) to
Tata Motors
.
[5]
[6]
Since 2021, Ford India has focused on the businesses of supporting a service network, import and distribution of automotive parts, and the sale of extended warranties.
History
[
edit
]
Ford India Private Limited began production in 1926 as a subsidiary of the
Ford Motor Company of Canada
. The initial Ford India company was liquidated in May 1953 as a result of
severe import restrictions
having been enacted.
[7]
Ford re-entered the Indian market in October 1995 as
Mahindra Ford India Limited
(MFIL), a 50-50 joint venture with
Mahindra & Mahindra Limited
. Ford increased its interest to 72% in March 1998 and renamed the company
Ford India Private Limited
.
[8]
The total investments made by
Ford Motor Company
since it set shop in 1995 stands at $2 billion as of April 2012.
[9]
Ford launched several models in India, including the sixth generation European
Ford Escort
and the
Ford Ikon
, later followed by the
Ford Mondeo (second generation)
. In 2003 Ford launched its first SUV - Endeavour. The first-generation Endeavour is based on the
Mazda
-based
Ford Ranger
pickup truck
, while the second-generation model is based on the globally-marketed
T6 Ranger
. In late 2004 Ford launched the European
Ford Fusion
,
[10]
which brought a totally new segment to India - the
crossover
which the company called as an Urban Activity Vehicle & marketed in India as The-No-Nonsense-Car; going by its name, it was a very practical car way ahead of its time, and was popular mostly among enthusiasts.
Ford launched the
Ford Fiesta
in its sedan guise which was widely received in the market and was a sales success. Ford also launched the
Ford Figo
, based on the sixth generation
Ford Fiesta
hatchback in the Indian market.
With the
Ford EcoSport
crossover, Ford became one of the first companies to exploit the Indian government's policy of lower taxes for sub 4-metre automobiles. Ford also exports the EcoSport from India to EU and US markets. Ford then launched the second generation
Ford Figo
, first in its sedan guise as the Ford Figo Aspire, which now remains Ford's only sedan in the Indian market after discontinuation of the sixth generation Ford Fiesta. The Figo hatchback was launched at a later date. To fill the gap between the Figo and the EcoSport, the company launched the
Ford Freestyle
in 2018; this is essentially a crossover version of the face-lifted Ford Figo hatchback.
In 2019, the company started talks with
Mahindra & Mahindra
to establish a new joint venture, but as of April 2021, those plans had been cancelled.
[11]
[12]
In September 2021, the company announced its intent to end all domestic manufacturing in India.
[13]
In December 2021 Kotak Mahindra Bank's finance unit Kotak Mahindra Prime purchased Ford Credit India's vehicle finance portfolio.
[14]
Manufacturing facilities
[
edit
]
Ford India's main manufacturing plant located in
Maraimalai Nagar
, 45 kilometres (28 miles) from
Chennai
has a capacity to produce 150,000 cars on a two-shift basis and 200,000 with three shifts. In 2010?11, the company's yearly production crossed the 100,000 mark.
[15]
As its new hatchback
Figo
was launched in March 2010,
[16]
Ford Motor Company
invested $500 million to double capacity of the plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines annually.
[17]
[18]
The engine plant opened for operations in January 2010.
[19]
In 2012, the company invested a further $72 million to raise engine production capacity to 330,000 units.
[20]
The company rolled out the
Ford EcoSport
in June 2013 with a $142 million investment. With the Ford EcoSport, the Chennai plant will ramp up to a capacity of 200,000 units.
[21]
As part of its plan to launch 8 new vehicles by 2015, the car maker announced an intended investment of $1 billion for a new state-of-the-art manufacturing plant at
Sanand
, Gujarat on a 460-acre site. Installed manufacturing capacity was announced at 270,000 engines and 240,000 vehicles a year. The plant commenced production in 2014.
[22]
Once the plant was fully operational, Ford India estimated it would have a cumulative capacity to make 440,000 cars and 610,000 engines annually.
[23]
In May 2022,
Tata Motors
announced that it has signed an agreement to acquire a plant.
[24]
In September 2021, the company announced it would cease production in India, citing growing losses and no sustainable path to profitability in the territory.
[13]
In February 2022, Ford decided to returning to the Indian market as an electric vehicle maker,
[25]
but in May 2022 plans were scrapped indefinitely of this decision.
[26]
After Ford's
Chennai
plant was closed, the workers union and Ford India negotiated for a severance package, in September 2022, Ford India presented its final severance package offer to the worker's union.
[27]
Models
[
edit
]
Discontinued
[
edit
]
Sales and service network
[
edit
]
As of April 2016, Ford has more than 376 sales and service outlets in 209 cities across India.
[28]
Sales performance
[
edit
]
In the year 2010, FIPL recorded sales of 83,887 vehicles against 29,488 vehicles sold during the year 2009 and registered a sales growth of 172%.
[29]
Calendar Year
|
Sales
|
Market Share
|
2010
|
83887
|
*
|
2011
|
96354
|
3.9%
|
2012
|
87600
|
3.32%
|
2013
|
80447
|
3.29%
|
2014
|
77157
|
3.06%
|
2015
|
77809
|
2.84%
|
2016
|
86607
|
2.95%
|
2017
|
87588
|
2.74%
|
2018
|
97804
|
2.92%
|
2019
|
73636
|
2.50%
|
2020
|
66415
|
2.39%
|
Exports
[
edit
]
Ford India exported 40 percent of its engine production and 25 percent of its car production to 35 countries. Some of them are: United States, Canada, Mexico, Saudi Arabia, South Africa, Nepal, Kenya, Bahrain, Angola, Bermuda, Ghana, Iraq, Liberia, Lebanon, Malawi, Madagascar, Mauritius, Nigeria, Senegal, Tanzania, UAE, Zambia and Zimbabwe.
[30]
Corporate social responsibility
[
edit
]
Ford India's CSR activities are focused primarily in four key areas: road safety, education, healthcare, and environment.
[31]
References
[
edit
]
- ^
"Ford U-Turns in India as Mahindra Tie-Up Shows Urgency to Profit"
.
Bloomberg.com
. 18 September 2017.
- ^
"Ford Plant and Corporate Office"
. Archived from
the original
on 13 December 2011
. Retrieved
1 August
2011
.
- ^
"Ford Company Profile"
.
- ^
"Ford wakes up badly burnt from its India dream"
.
Reuters
. 17 September 2021
. Retrieved
18 September
2021
.
- ^
"Jaguar Land Rover owner Tata Motors to buy Ford car plant in India"
.
BBC News
. 8 August 2022
. Retrieved
8 August
2022
.
- ^
"Tata Motors to buy Ford India's manufacturing plant for $91 million"
.
Reuters
. 7 August 2022
. Retrieved
8 August
2022
.
- ^
"Passenger Car Manufacturers",
Ward's Canadian Automotive Yearbook 1955
, Windsor, Ontario: Robert B. Powers, 1955, p. 27
- ^
"Ford India Pvt Ltd- about, dealers, models, plant location map and more"
.
- ^
"Ford drives into Sanand"
.
Business Line
. Retrieved
8 September
2012
.
- ^
"Ford to launch Fusion in Dec ? India's first 'crossover' car"
.
Business Line
. Retrieved
26 August
2004
.
- ^
"Ford and Mahindra to end collaboration on all projects in India"
.
CNBC
. 1 April 2021
. Retrieved
9 September
2021
.
- ^
"Ford, Mahindra End Discussions for Auto Joint Venture | Ford Media Center"
.
media.ford.com
. Retrieved
9 September
2021
.
- ^
a
b
"Ford to stop making cars in India"
.
Reuters
. 9 September 2021
. Retrieved
9 September
2021
.
- ^
Chaudhary, Smriti (22 December 2021).
"Kotak Mahindra Buys Ford Credit India's Vehicle Finance Portfolio"
.
BQ Prime
.
- ^
"Ford looking to achieve full capacity; plans to expand soon"
.
- ^
"Ford Figo roll out by March 2010"
. Archived from
the original
on 5 February 2010
. Retrieved
28 January
2010
.
- ^
"Ford - Virtual Plant Tour"
. Archived from
the original
on 15 June 2011
. Retrieved
28 January
2010
.
- ^
"Ford India to export small cars from mid-2010"
. Archived from
the original
on 27 February 2009
. Retrieved
28 January
2010
.
- ^
"Ford India Engine Plant Rolls out 1,00,000th unit | Motoroids"
. 29 March 2011.
- ^
"Ford India increases engine capacity"
.
Business Today
. 18 July 2012
. Retrieved
7 September
2012
.
- ^
"Ford looking to achieve full capacity; plans to expand soon"
.
Business Line
. Retrieved
7 September
2012
.
- ^
"Ford lays foundation for $1-b unit at Sanand"
.
Business Line
. Retrieved
7 September
2012
.
- ^
"Ford India is changing the way its parent Ford Motor Company functions"
.
Business Today
. 23 February 2012
. Retrieved
7 September
2012
.
- ^
"Tata Motors looks to buy Ford India plant in electric vehicle push"
.
Reuters
. 30 May 2022
. Retrieved
31 May
2022
.
- ^
"Ford to come back into India as an electric vehicle manufacturer"
. 15 February 2022
. Retrieved
27 March
2022
.
- ^
"Ford makes U-turn, shelves plans for EV exports from India"
.
Reuters
. 12 May 2022
. Retrieved
8 August
2022
.
- ^
Balachandar, G. (5 September 2022).
"Ford announces final settlement package for Chennai factory workers"
.
www.thehindubusinessline.com
. Retrieved
9 September
2022
.
- ^
"About"
.
india.ford.com
.
- ^
"Ford Records Strong Sales Growth In 2010, Figo Caps The Year With Several Awards"
. Archived from
the original
on 20 March 2012
. Retrieved
3 January
2011
.
- ^
"Ford India begins bulk export of cars from Chennai"
. Archived from
the original
on 6 October 2014
. Retrieved
28 January
2010
.
- ^
"Ford India Private Limited 3Ci Score"
.
3Ci group
. Retrieved
24 January
2016
.
External links
[
edit
]
Wikimedia Commons has media related to
Ford India
.
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