US auto major Ford Motor will stop making cars in India and shut down both its plants in the country becoming the latest auto-maker to exit the market.
Ford announced today that the manufacturing of vehicles for local sale will cease immediately while export manufacturing will wind down at the Sanand plant by Q4 2021, and the Chennai engine and vehicle plants by Q2 2022.
Ford made the decision as it was not profitable for them to continue, said one of the Reuters sources, adding that the process will take about a year to complete.
However, the US auto-maker will continue to sell some of its cars in the country through imports, said the second source, adding that it will also provide support to dealers to service existing customers.
The brand has also announced that it will "significantly expand its 11,000-employee Business Solutions team in India in coming years to support Ford globally."
Ford says that about 4000 employees are expected to be affected by the restructuring and the company promises to talk with all the stakeholders to figure out a fair settlement.
Ford becomes the latest carmaker following companies such as General Motors and Harley Davidson, to exit the Indian market that once served as a manufacturing hub and promised exponential growth.