New Delhi. America’s leading automobile company (Ford) has decided to leave the country after doing business in India for more than two decades. A day after the company’s announcement on Friday, a senior government source said that the decision does not reflect the business environment of the country, but is a matter of operational issue.
The source, a senior government official who spoke on condition of anonymity, said the US company has decided to stop production due to competition from Japanese and Korean car makers.
Ford to shut down manufacturing plant
Ford Motor Company on Thursday announced that it will close two of its manufacturing plants in India and sell only imported vehicles. Ford, which has invested around $2.5 billion in its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, will stop selling vehicles such as the EcoSport, Figo and Aspire produced from these plants.
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The story of growth in the automobile sector continues
The government source said, “India’s automobile sector continues to grow and is growing in both domestic and export markets. Ford’s exit from business may be due to potential operational issues and does not in any way reflect the Indian automobile sector or the business environment in India.”
Ford is the second US company after General Motors to close the plant
Ford is the second American auto company after General Motors to close its plant in India. In 2017, General Motors had said that it would stop selling vehicles in India as its business has not changed even after struggling for more than two decades.
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