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Why did Ford exit from India? - So Called Happenings

Why did Ford exit from India?

Ford exit from India anedi ippudu automobile industry lo trending news. Recent ga September 9th na Ford inka India lo vaati cars production apestham ani announce chesindi. Idhi first time ithe kadhu oka international auto maker India nundi exit avvadam. Asalu enduku Indian market nundi ilanti international automobile companies anni exit ipothunnayi? Ford kuda India lo production apeyadaniki karanam enti? Okevela mana daggara Ford car eh kanuka unte dhaniki future lo services ela anedhi chuddham.

What did Ford announce?

India lo unna 2 Ford plants Sanand and Maraimalai lo inka ee cars production anedhi apesthunnam ani. Sanand lo plant ni 2021 ending lo and Maraimalai lo plant ni 2022 second quarter lo apesthunam ani and migatha engines manufacturing export dwara supply chestham ani and already sold aina cars ki services anevi continue chestham ani official ga twitter lo tweet chesi announce chesaru.

India lo Sanand and Maraimalai lo rendu plants unnay Ford ki. Maraimalai ante Chennai lo, engine and vehicle manufacturing plant undhi. Alage Gujarat, Sanand lo vehicle assembly plant undhi. Totally renditini moosi vestham ani annaru. 

When did Ford come to India?

Ford oka US car company. Idhi 1995 lo India lo business anedhi start chesindhi Mahindra & Mahindra group tho joint ga. Chennai lo oka greenfield plant construct chesindhi. Oka entry level sedan tho business start chesindhi. Ford product IKON ah time lo best seller. Ee IKON vallane Ford oka brand ga establish indhi India lo. Kani again 1998 lo Mahindra & Mahindra tho partnership end chesukuni solo operator ga continue chesindhi. Malli 2017 lo partnership chesindhi Mahindra & Mahindra tho kani 2020 lo malli ah partnership ki end pettesindi. Rough ga chusthe India lo Ford ki 10 lakh existing customers eh unnaru.

Ford Ikon

Ford and it’s sales in India

Ee year June lo only 2,790 units ni matrame sell cheyagaligindi. 2019 financial year end time Ford only 93,000 units ni matrame ammagaligindhi. And Total ga last one year nundi chusthe only 51,862 units ni matrame ammagaligindhi Ford. Average ga chusthe maximum 4-5k units oka month ki. 

And India lo unna 2 plants lo almost all one year lo 5 Lakh cars varaku manufacture chese capacity undhi Ford ki. Almost ippudu India lo manufacturing units apeyadam valla 4,000 employees kuda job loss ipotharu. 

Ford India President and MD ina Anurag Mehrotra cheppindhi enti ante chala years ga unna loss ni consider chesi ee decision anedhi teesukovadam jarigindhi annaru. Past 10 years ga chusthe more than 2 billion dollars loss lo undhi Ford. Indian market lo kuda ee cars ki demand kuda weak ga ne undhi. So sales ni increase cheyadam lo chala ibbanduley paduthunnam annaru. Existing customers ki warranty period varaku services ni ithe provide chesthunnam annaru. 

Ford

Problems faced by Ford

25 years nundi India lo unna e Ford car company ki pandemic valla semi-conductors and vere components ki supply lo chala problems vacchayi. And long term lo chuskunte Ford ki oka profitable or sustainable path anedhi dorakadam kastam indhi. Also, new vehicles ki demand kuda chala weak undhi ani annaru. Andukosame inka in-country manufacturing ki full stop pettesindhi.

Future sales and increase in prices

India lo manufacturing ithe apesthunam kani India lo sales ithe continue chestham foreign nundi import chesi ani announce chesindhi Ford. So, deeni batti chusukunte future lo Ford cars prices automatic ga perigipovacchu. Present unna prices kanna ekkuva prices anevi untay. Dhaniki karanam, foreign nundi import cheskodam valla. So, eppudu ithe foreign countries nundi import chesthunamo automatic ga government vatiki taxes vesthundi. 

Alage future lo vehicle ki kavalsina spare parts kuda present unna price kante double avvacchu. And second hand market lo kuda present resale value kuda taggipothundhi. Because future lo veeti services and spare parts pricing perigipothundi kabatti evaru interest chupincharu konadaniki. 

Okavela future lo import chesina car sales and demand kuda taggipothey aah import cheyadam kuda agipovacchu. 

Further services to current Ford customers

Ippudu already unna Ford company car customers ki further ga chala problems ravacchu. Resale kastam avvachu, spare parts and servicing ki kuda ibbandhi kalagacchu. So, already unna Ford customers ki further services provide chestham ani announce chesaru. Further services and spare parts availability untundhi ani. And warranty kuda claim chesukovacchu ani current Ford owners ki assurance ithe icchindhi. 

Alage further ga India ki kottha Mustang coupe and electic vehicle Mustang Mach-e ni kuda India ki import chestham annaru.  

Loss for Indian dealers

Ford exit from India valla chalane loss undhi. Indhaka chusinattu cars prices perigipothay and spare parts prices perigipothay. Alage dealers kuda chala loss avtharu. Ford ki almost 170 dealers and 390 outlets unnayi. Almost 2000 crores spend chesaru dealerships set cheskodaniki. Ee dealers daggarey almost 40,000 employees unnaru. Ippudu veellu andaru jobs kuda risk lo padinattey. 

Why did Ford failed in the Indian market?

Ford cars lo top notch facilities unna kuda car designs time to time update cheyakapovadam first reason anavacchu. Because vere company cars chusukunte time to time update chesthunaru and more features ni add chesthu competition ki vaccharu. Also, kottha kottha models and cars ni eppuduki appudu launch cheyakapovadam valla kuda Indian market lo fail ayyi undavacchu. 

Ye car company ki ina mana India lo success ravali ante main ga price anedhi takkuva undali, maintenance takkuva undali and services kuda ekkuva undali. Maruti offer chese cheapest passenger car 3.5 lakhs unte, Ford di matram cheapest car 5 lakhs above e undhi. Idhi kuda oka main reason ayyi undavacchu. 

Service stations wise chusukunte Maruti ki all over India lo 3,500 service stations unnayi. Alage Hyundai ki 1,300 service stations kani Ford ki matram ony 308 service stations matrame unnayi all over India lo. 

Ford ki hit products unna kani Ford line up lo eppudu multiple hits levu Hyundai laga. Maraimalai lo plant under utilized lo unna kuda expand cheyadam kosam 2011 lo Gujarat lo plant start chesi billion dollars invest chesaru. Idhi kuda oka rakanga Ford ki loss eh.

India lo unna automobile market Suzuki eh dominate chesthundi anavacchu. Dhaniki karanam more than 48% share undhi market lo Maruti Suzuki ki. Alage Hyundai ki kuda almost 18% market share anedhi undhi. 2015 lo Ford market share 9.5% ki perigindhi kani next years lo chala taggipoindhi. And current ga 2021 lo only 3.3% market share matrame undhi. 

MG motors and its talks with Ford

2019 lo India lo ki enter ina MG motors Ford tho contract manufacturing ki deal set cheskundhi. Kani pandemic valla adhi kastha agipoindhi. Ippudu India lo unna Ford plants rendu elago close chesthunaru kabatti MG motors ki factories kuda eduruga unnayi. MG motors ippudu ee rendu plants ni konukkovadaniki interest chupistundhi. And Tamilnadu government kuda approvals ki full support istham ani announce chesindhi. Inka ee talks initial stage lo ne unnayi antunnaru. So, okavela MG motors e kanuka ee factory ni konte almost oka kottha factory ni konnattu and government nundi approvals kuda easy ga vasthay.

Hyundai and its success

Ford start ina one year ki Hyundai India ki vacchindhi 1996 lo. Chennai lo own manufacturing plants ni start chesindhi. Appudike Indians ki Ford baga telsu. Ah time lo Hyundai ni promote cheyandaniki Sharukh Khan ni brand ambassador ga chesi, chala ne advertisements run chesindhi. Kani 25 years taruvatha tirigi chusthe ippudu current Hyundai India lo second largest player. Almost 18.12 percent market share undhi India lo. Ford tho polisthe chala ekkuva. 

Ford first product ina Escort India lo release ayyaka flop indhi and first impression e bad impression tecchukundhi India lo. where as Hyundai Indians ki taggattu ga oka perfect car Santro ni teeskocchi launch chesindhi. Starting lo ne hit product tho success kottindhi. Adhey chance ga teesukuni kottha models tho technologies ni base chesukuni cars ni launch chesthu vacchindhi. Deeni vallane athi takkuva samayam lo Hyundai ki market lo antha craze vacchindi. 

General motors and its exit

Past few years ga chusukunte chala ne international car companies India nundi exit ipoyay. 2017 lo General Motors kuda India nundi exit ipoindhi. Dhaniki chala ne karanalu unna kani corporate structure lo frequent changes valla long term strategies debba tinadam, financial crisis, brand and product strategies lo consistency lekapovadam valla and mainly frequent launches and withdrawals valla GM car owners disappoint ayyi confuse avvadam valla sales kuda taggipoyay. Anduke 20 years tarvuta India nundi exit ipoindhi. 

Harley Davidson’s exit from India

Alage inkoka pedda company ina Harley Davidson kuda Indian market ni vidichi vellindhi. Dhaniki karanam 96 Million dollars loss lo undhi ani and only 103 units matrame sale ayyay July 2020 lo ani announce chsaru. Totally Harley Davidson India lo unna 10 years lo only 27,000 units ni matrame sell cheyagaligindhi where as Royal Enfield okate deeniki double units ni only one month lo sell cheyagaligindhi.  

Tesla might not come to India

Recent ga Tesla cars ni India lo Launch cheyamani twitter lo adigithe dhaniki Elon Musk reply chesaru. Maku kuda India lo Tesla ni launch cheyali ani undhi kani, import cheyadaniki ayye taxes chala ekkuva ani and India lo energy cars ni kuda diesel and petrol cars laga treat chestham ani annaru. 

Conclusion

Ford India nunchi complete ga exit avvadam ledu, services ilage offer chesthamu ani chepputundi. Meeku deeni paina nammakam kanuka unte Ford vehicle konocchu, avi kuda dealers daggara unna stock varake sales untayi. Ledu anukunte avoid cheyandi. Long term lo chala problems vasthayi and resale kuda undadu.

Also read Are UPA Oil Bonds responsible for high fuel prices?

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Priyanka Komakula

22 thoughts on “Why did Ford exit from India?

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