- By Divanshi Sharma
- Tue, 24 Oct 2023 01:20 PM (IST)
- Source:JND
American automobile manufacturer Ford stopped production, manufacturing and selling of Ford cars in India in 2022. In September 2021, Ford India announced it would stop production in India due to ongoing losses. They briefly considered producing electric vehicles (EVs) in February 2022 but dropped the idea by May 2022. Finally, they stopped vehicle production in July 2022, marking their exit from the Indian market. However, the US automobile giant continued to export engines and vehicles before it completely exited the automobile industry of India.
Ford Motors Sales in India
Ford has revealed it has made profits of Rs 505 crore in the financial year of 2023 by exporting vehicles and engines produced in India. In the FY 2022-2023, Ford India reported 31 per cent lower revenue than the previous year, totaling Rs 7,079 crore with total expenses of Rs 9,607 crore for that year. This decrease in revenue was majorly because of the decision made in September 2021 to stop vehicle and engine manufacturing operations in Chennai and vehicle manufacturing in Sanand.
Their total revenue included Rs 980 crore from domestic sales and Rs 6,099 crore from exports. These figures were significantly lower than the previous year, with domestic sales down 59 percent and exports down 22 percent. In terms of the number of vehicles sold, Ford India sold 17,219 cars and 177,864 engines in the financial year of 2022-2023, compared to 69,223 cars and 82,067 engines the previous year. Vehicle sales were down by 75 percent, but engine sales increased by 117 percent. Despite these changes, the company reported a profit after tax of Rs 505 crore, compared to a net loss of Rs 4,226 crore the previous year. This profit was primarily due to reduced restructuring expenses and higher engine sales.
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Ford India’s Manufacturing Plant in Sanand, Gujarat
Tata Passenger Electric Mobility Limited, a subsidiary of Tata Motors, acquired Ford India's vehicle manufacturing plant in Sanand, Gujarat in January 2023. Ford India continues to lease the land and buildings of the Powertrain Manufacturing Plant in Sanand. The company is also exploring potential buyers for its Maraimalai Nagar plant and is in the talks with companies like VinFast and JSW Group for a potential sale.