Ford and Mahindra had announced to end their discussions on the proposed automotive joint venture. The American automaker is going through its worst phase, as the domestic sales of the company has been reporting a steady decline. The sales are not likely to increase in near future, as Ford has no plans to make new investments in India.
According to FADA (Federation of Automobile Dealers Associations), Ford India retailed 2,790 units in June compared to 2,872 units in the same month last year. Ford retailed 1,671 units and 4,214 units in May and April 2021 respectively. The brand’s top-selling model, Ford EcoSport sales have also been declined significantly. The company’s market share is now at 2 percent from more than 3 percent earlier.
A new media report claims that Ford Motor Company is looking for a new partner in India. The company is also looking at partnerships for contract manufacturing at one of its production plants in India. The company is reportedly in talks with multiple automakers including Citroen India, which currently assembles the C5 Aircross at its plant in Thiruvallur, Tamil Nadu.
A person close to the development told The Hindu BuisnessLine that Ford was in talks with MG Motor earlier, but that fell through, and now it is in talks with Citroen India for contract manufacturing.
Ford India currently manufactures and assembles engines in two plans – Chennai and Sanand, Gujarat. The Chennai plant has an annual production capacity of 2 lakh cars and 3.40 lakh engines. This plant currently manufacturs the EcoSport and Endeavour. On the other hand, Ford’s Sanand plant has an annual production capacity of 2.40 lakh vehicles and 2.70 lakh engines. Ford currently produces Aspire and the Figo hatchback at its Gujarat based manufacturing unit.
Source – The Hindu BusinessLine
