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Ford India

From Wikipedia, the free encyclopedia
Indian subsidiary of Ford

Ford India Private Limited
Company typeSubsidiary
IndustryAutomotive
FoundedOctober 1995(as Mahindra Ford India Limited)[1]
HeadquartersSholinganallur,Chennai,Tamil Nadu[2]
Key people
Anurag Mehrotra (final Managing Director in 2021)[3]
ProductsAutomobiles
Number of employees
10,000 (2021)
ParentFord Motor Company
Websiteindia.ford.com

Ford India Private Limited is a subsidiary ofFord Motor Company for its operations in India. Its headquarters is located inSholinganallur,Chennai,Tamil Nadu. Ford also had operated integrated manufacturing facilities inSanand, Gujarat.[4] 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.[5] 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) toTata Motors.[6][7] 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.

Ford India leased back some of its former facilities in Gujarat from Tata Motors for the purpose of manufacturing engines for some export markets. Its engine manufacturing operations continue as of 2025 to a limited extent. Ford India still owns the closed Chennai plant, and is determining its future plans, to be revealed in 2025-26.

History

[edit]
Ford Motor Co. Factory in India.

Ford India Private Limited began production in 1926 as a subsidiary of theFord Motor Company of Canada. The initial Ford India company was liquidated in May 1953 as a result ofsevere import restrictions having been enacted.[8] Ford re-entered the Indian market in October 1995 asMahindra Ford India Limited (MFIL), a 50-50 joint venture withMahindra & Mahindra Limited. Ford increased its interest to 72% in March 1998 and renamed the companyFord India Private Limited.[9] The total investments made byFord Motor Company since it set shop in 1995 stands at $2 billion as of April 2012.[10]

Ford launched several models in India, including the sixth generation EuropeanFord Escort and theFord Ikon, later followed by theFord Mondeo (second generation). In 2003 Ford launched its first SUV - Endeavour. The first-generation Endeavour is based on theMazda-basedFord Rangerpickup truck, while the second-generation model is based on the globally-marketedT6 Ranger. In late 2004 Ford launched the EuropeanFord Fusion,[11] which brought a totally new segment to India - thecrossover 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 theFord Fiesta in its sedan guise which was widely received in the market and was a sales success. Ford also launched theFord Figo, based on the sixth generationFord Fiesta hatchback in the Indian market.

With theFord 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 generationFord 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 theFord Freestyle in 2018; this is essentially a crossover version of the face-lifted Ford Figo hatchback.

In 2019, the company started talks withMahindra & Mahindra to establish a new joint venture, but as of April 2021, those plans had been cancelled.[12][13]

In September 2021, the company announced its intent to end all domestic manufacturing in India.[14] In December 2021 Kotak Mahindra Bank's finance unit Kotak Mahindra Prime purchased Ford Credit India's vehicle finance portfolio.[15]

Manufacturing facilities

[edit]

Ford India's main manufacturing plant located inMaraimalai Nagar, 45 kilometres (28 miles) fromChennai 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.[16]

As its new hatchbackFigo was launched in March 2010,[17]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.[18][19] The engine plant opened for operations in January 2010.[20] In 2012, the company invested a further $72 million to raise engine production capacity to 330,000 units.[21]

The company rolled out theFord 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.[22]

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 atSanand, 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.[23] 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.[24] In May 2022,Tata Motors announced that it has signed an agreement to acquire a plant.[25]

In September 2021, the company announced it would cease production in India, citing growing losses and no sustainable path to profitability in the territory.[14]

In February 2022, Ford decided to returning to the Indian market as an electric vehicle maker,[26] but in May 2022 plans were scrapped indefinitely of this decision.[27]

After Ford'sChennai 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.[28]

Models

[edit]

Discontinued

[edit]
ModelReleasedDiscontinuedImageNotes
Escort19962001
Ikon19992010
Mondeo20012006Imported
Endeavour20032021
Fusion20042010
Fiesta/Classic20052015
Figo20102021
Global Fiesta20112015
EcoSport20132022
Figo Aspire20152021
Mustang20162021Imported
Freestyle20182021

Sales and service network

[edit]

As of April 2016, Ford has more than 376 sales and service outlets in 209 cities across India.[29]

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%.[30]

Calendar YearSalesMarket Share
201083887*
2011963543.9%
2012876003.32%
2013804473.29%
2014771573.06%
2015778092.84%
2016866072.95%
2017875882.74%
2018978042.92%
2019736362.50%
2020664152.39%

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.[31]

Corporate social responsibility

[edit]

Ford India's CSR activities are focused primarily in four key areas: road safety, education, healthcare, and environment.[32]

References

[edit]
  1. ^"Ford U-Turns in India as Mahindra Tie-Up Shows Urgency to Profit".Bloomberg.com. 18 September 2017.
  2. ^"Ford Plant and Corporate Office". Archived fromthe original on 13 December 2011. Retrieved1 August 2011.
  3. ^https://www.businesstoday.in/latest/corporate/story/ford-india-md-anurag-mehrotra-to-step-down-by-sept-end-307594-2021-09-24#:~:text=Ford%20India%20MD%20Anurag%20Mehrotra%20to%20step%20down%20by%20Sept%2Dend,-Mehrotra%2C%20according%20to
  4. ^"Ford Company Profile".
  5. ^"Ford wakes up badly burnt from its India dream".Reuters. 17 September 2021. Retrieved18 September 2021.
  6. ^"Jaguar Land Rover owner Tata Motors to buy Ford car plant in India".BBC News. 8 August 2022. Retrieved8 August 2022.
  7. ^"Tata Motors to buy Ford India's manufacturing plant for $91 million".Reuters. 7 August 2022. Retrieved8 August 2022.
  8. ^"Passenger Car Manufacturers",Ward's Canadian Automotive Yearbook 1955, Windsor, Ontario: Robert B. Powers, 1955, p. 27
  9. ^"Ford India Pvt Ltd- about, dealers, models, plant location map and more".
  10. ^"Ford drives into Sanand".Business Line. Retrieved8 September 2012.
  11. ^"Ford to launch Fusion in Dec — India's first 'crossover' car".Business Line. Retrieved26 August 2004.
  12. ^"Ford and Mahindra to end collaboration on all projects in India".CNBC. 1 April 2021. Retrieved9 September 2021.
  13. ^"Ford, Mahindra End Discussions for Auto Joint Venture | Ford Media Center".media.ford.com. Retrieved9 September 2021.
  14. ^ab"Ford to stop making cars in India".Reuters. 9 September 2021. Retrieved9 September 2021.
  15. ^Chaudhary, Smriti (22 December 2021)."Kotak Mahindra Buys Ford Credit India's Vehicle Finance Portfolio".BQ Prime.
  16. ^"Ford looking to achieve full capacity; plans to expand soon".
  17. ^"Ford Figo roll out by March 2010". Archived fromthe original on 5 February 2010. Retrieved28 January 2010.
  18. ^"Ford - Virtual Plant Tour". Archived fromthe original on 15 June 2011. Retrieved28 January 2010.
  19. ^"Ford India to export small cars from mid-2010". Archived fromthe original on 27 February 2009. Retrieved28 January 2010.
  20. ^"Ford India Engine Plant Rolls out 1,00,000th unit | Motoroids". 29 March 2011.
  21. ^"Ford India increases engine capacity".Business Today. 18 July 2012. Retrieved7 September 2012.
  22. ^"Ford looking to achieve full capacity; plans to expand soon".Business Line. Retrieved7 September 2012.
  23. ^"Ford lays foundation for $1-b unit at Sanand".Business Line. Retrieved7 September 2012.
  24. ^"Ford India is changing the way its parent Ford Motor Company functions".Business Today. 23 February 2012. Retrieved7 September 2012.
  25. ^"Tata Motors looks to buy Ford India plant in electric vehicle push".Reuters. 30 May 2022. Retrieved31 May 2022.
  26. ^"Ford to come back into India as an electric vehicle manufacturer". 15 February 2022. Retrieved27 March 2022.
  27. ^"Ford makes U-turn, shelves plans for EV exports from India".Reuters. 12 May 2022. Retrieved8 August 2022.
  28. ^Balachandar, G. (5 September 2022)."Ford announces final settlement package for Chennai factory workers".www.thehindubusinessline.com. Retrieved9 September 2022.
  29. ^"About".india.ford.com.
  30. ^"Ford Records Strong Sales Growth In 2010, Figo Caps The Year With Several Awards". Archived fromthe original on 20 March 2012. Retrieved3 January 2011.
  31. ^"Ford India begins bulk export of cars from Chennai". Archived fromthe original on 6 October 2014. Retrieved28 January 2010.
  32. ^"Ford India Private Limited 3Ci Score".3Ci group. Retrieved24 January 2016.

External links

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