, the company is looking to pool its resources into improving sales back home.
The closure of the Indian plants means Ford will cease production of models intended for the Indian market, but the company will continue to provide maintenance services, parts, and warranty support to existing customers.
in the U.S., it has a market share of less than 2% in India, and is considered a flashy and expensive brand.
Ford ranks ninth in the list of India’s biggest auto manufacturers, far behind Indian giants Mahindra & Mahindra and Tata Motors.
In fact, the only foreign players to have real success breaking into the Indian car market have done so as part of a joint venture with Indian companies.
Maruti Suzuki India, Hyundai Motor India Limited, and Toyota Kirloskar Motor Private Limited are all successful examples of car makers working cooperatively with Indian brands, something American companies have been unwilling to do.
Ford’s decision to close down its Indian plants is bad news for the 4,000 Indian employees who stand to lose their jobs.
It is also bad news for Indian PM Narendra Modi, who promised major foreign investment under his leadership, especially from U.S. companies.
While Modi’s friendship with former President Trump suggested American investment could be on its way, Indian news reports have since characterized the relationship as toxic, and not one that benefited them in any tangible way.
A recent poll suggests just 24% of Indians considered Modi "best-suited" to be India's next prime minister, a staggering drop from 66% just 12 months earlier.
While Ford’s decision to leave India makes good business sense in the short and medium term, it remains to be seen if it can ever be tempted back.
Some commentators suspect American car makers are confident of making a larger dent in Indian market share once electric vehicles begin to take off over there, with U.S. companies further along than their Indian counterparts when it comes to EVs.
"Alex Healey is an insurance writer specializing in car insurance and personal finance. Alex’s mission is to create informative, just-in-time content for car owners and buyers. Alex has written articles for Jerry on topics ranging from hybrid vehicle rankings to used car costs. Before joining Jerry, Alex worked as a digital content specialist and editor for brands including InsuranceHotline.com, Rates.ca, and Booking.com. When not writing for Jerry, Alex continues to build his freelance digital content portfolio in the insurance and automotive industries. "