Closing Ceremony for 30 Years of Operation– Ford: Competition is also high in the fully globalized Indian market. It has become a common occurrence in the modern economic market that new interventionists have overthrown a sector giant for many years and started new companies primarily in the interests of NuGo, but were crushed by larger corporations. has given.
High-demand Indian market
Multinational corporations continue to invade the high-demand Indian market. The fast growing automotive market in India is mainly dominated by foreign companies.
An example of this is that in the last 20 years, cars of various foreign companies have been filling the Indian roads. While there is an increasing influx of new car makers due to sales opportunities in the market, there is also frequent exit of companies due to stiff competition.
Ford announced stop production of cars in India
Closing Ceremony for 30 Years- In that episode, the famous US Ford company has announced that it will stop production of cars in India and the sale of currently manufactured cars. The main reasons for Ford’s decision were its continued inability to make a profit in the highly competitive Indian car market, declining exports of manufactured cars and its inability to increase sales in the Indian market as much as possible.
- Income Tax filed 1.19 crore people till 7th September. E-Filing Portal of Income Tax Department
- Introducing a new network service that integrates bank accounts- Account Aggregator Network- a financial data-sharing system
US General Motors, Harley Davidson and Fiat of Italy
American automakers such as General Motors, Harley Davidson and Fiat of Italy have pulled out of the Indian market in recent years. However, now that Ford has given up, it has caused additional controversy.
First multinational car manufacturer
This is because Ford has the distinction of being the first multinational car manufacturer to make its mark in India when the liberalization economic policy was introduced in India in the early 1990s.
Ford cars continued to decline
Though Ford has created a distinct customer base in India, it is true that Ford has not been able to compete with companies like Maruti Suzuki and Hyundai.
As a result, sales of Ford cars continued to decline, except for a few specific models. Management decisions, including the cancellation of Ford’s agreement with Mahindra of India, limited Ford’s growth.
Ford utilizing 20 percent of its production two plants in India
Ford has been utilizing only 20 per cent of its production capacity at its two plants in India for the past few years. Half of which were exported. So, it’s clear that sales of those corporate cars have been on a downward trajectory for the past few years.
Closing Ceremony for 30 Years- Moreover, if the recent slowdown in the Corona period has been a deterrent for other carmakers, it has become a stumbling block for Ford alone.
Ford says it has been forced to close factories as it has lost $2 billion (about Rs 15,000 crore) in the Indian market over the past 10 years.
- House for All scheme- Know all about House for All Yojana
- Gold prices rise again: What is the situation today? | gold price
- Boost textile sector with 10,683 Cr.- Concessional schemes worth Rs 10,683 crore to boost textile sector – Union Cabinet approved
Ford in Gujrat and Tamil Nadu Factories
There are factories in Sanand Nagar, Gujarat and Maraimalai Nagar near Chennai in Tamil Nadu. The closure of both plants will result in over 4,000 direct workers losing their jobs.
More than 40,000 jobs will be lost
It is estimated that Ford’s closure will result in the loss of more than 40,000 jobs indirectly across the country, due to layoffs at retail outlets and service centers, as well as job losses for medium-sized companies that supply small components. Ford has 170 deals and over 400 stores across the country.
Closing Ceremony for 30 Years
Although it has already announced that it will continue to provide services and spare parts to its corporate car owners, it is not possible to say with certainty how long the quality of service and spare parts will be available after production and sales have stopped. Will be
Ford has said that it will import and sell its popular models manufactured abroad in India, even if it ceases production in India. However, it is doubtful whether it will continue to attract customers.
Ford has ceased production in India
Ford has ceased production in India due to its inability to continue operating profitably. The Central government has said that the move will not have any major impact on the Indian automobile industry and economy. However, this is a setback for the government’s ‘Make in India’ initiative.
Automotive sector companies have emphasized the need to reduce the maximum levy to 28 per cent GST.
Ford founder Henry Ford successfully led his co-production company in the early 1990s with a style of high production and high sales targeting the American middle class.
This policy of the United States is called ‘photoism’. However, it appears that the company has not followed Henry Ford’s policy in India.