Why Ford Stopped Making Cars In India
Vložit
- čas přidán 7. 12. 2021
- In 2021, Ford stopped making cars in India. With the market there being mostly dominated by two-wheelers, Ford lost approximately $2 billion in its India business, prompting the company to begin slowing down its operations. General Motors has also experienced similar issues finding success in the country. These problems are due in large part to different needs in the market and predictions not panning out as anticipated, which leads companies like Ford and GM to pull back and focus more on profitability.
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: cnb.cx/SubscribeCNBCclassic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
#CNBC
Why Ford Stopped Making Cars In India
"Why Ford Stopped Making Cars outside america" should be the title , instead of "Why Ford Stopped Making Cars in india"
Honestly, Ford’s failure in these markets is their own doing. They make cars that are poorly designed and manufactured and expect to get away with it.
It's Ford's fault. They treated India as some 3rd world poverty stricken nation and sold outdated or lower scale models. They failed to see the statistics of how many German marques & other luxury brands are sold there. Indians are a very brand conscious lot (while being price conscious). If you treat them like some slumdogs they recognize it and reject you outrightly. When Ford entered India, the Indians expected brands like the Mustangs, Lincolns, the Iconic pickup trucks, etc. Instead Ford dumped some outdated cheap entry level car models and expected them to sell. Indians saw through this as an insult and rejected the brand completely. This is the reason why Mercedes, BMWs are selling in huge numbers there, because they launch the latest models. Audi got into trouble when the market there realized that Audi too was dumping rejected low quality cars (including Lamborghinis), even after selling a good lot of those supercars.
American businesses can mostly only operate in monopolistic markets with comfortable margins and not in cut throat ones where they need volumes to survive.
Worked in US based co in India and USA for 16 years.. Always felt that instead on focus of business, revenue , mgmt is more focus on showoff , policy, screwing employees by another employee
Always nice to have more competition but I think companies like Ford, GM and even Toyota to an extent have failed to come up with the kinds of cars that are preferred in India. Kia came to India only a couple of years ago and they're killing it here with their SUVs because they understand the market. Local manufacturers like Tata and Mahindra are also offering very compelling products nowadays. If an Indian manufacturer is able to match or exceed the level of quality and reliability of a foreign manufacturer, I'm obviously going to buy from the Indian manufacturer. Foreign companies need to innovate more to keep up. I'd never buy a Volkswagen for instance because the models they bring to India are years behind the ones they sell in the rest of the world in terms of features, safety, etc. It feels like such companies couldn't care less about India and are only here to make quick profits by selling junk. Case and point, just take a look at the Polo that they sell in India vs the Polo they sell in Europe.
I found the management of GM to be very lazy and lethargic in India. Ford was a bit better but still not enough. Other competitors are too quick and dedicated in their work. The Americans were a bit laid back.
Kia and MG have just entered the market and are doing well becuz they know the market ,
As a person who lives in India and my father was involved with their entrance I can tell you it because American management was out of touch with Indian consumers. They have products within the international and American markets that would have appealed to Indian joint families. They refused to see that a bigger car like the expedition and explore which would have appealed to joint families if locally manufactured would have been priced competitively. What happened to ford they deserve they refused to listen to anybody and used outdated ideas on the Indian market they got what they deserved.
Ford were not able to understand indian market.
I am Indian and I know the real reason why they r leaving . They Can't compete with Indian Brands like Tata and Mahindra and other German and Japanese/Korean brands. American cars were never better reliable than Japanese nd never suitable than Indian cars in india . This is the sole reason they went in loss. No matter what they say.
Ford never really tried. It made a comeback with the Ecosport and should've taken off from there. But no updates, facelifts and some poor decisions like going back to hatchbacks when SUVS are booming here has led to their downfall. Indians loved ford while it lasted. Very disappointed that both the US giants have left. Hope Tesla does something big here!
The problem has always been in GM and Ford management, not anything else.
Its a management fail. Period.
Honestly think it is poor management and priority shift towards EV, SUVs and home market. if KIA’s have the highest profit margin and waiting period, logically can’t understand why Ford would want to exit that market, after provisioning such a high exit cost.
Did Ford make region-specific cars in the foreign markets? Or were they trying to sell their same lineup everywhere?
True global automakers are Hyundai Group (Hyundai, Kia) and Toyota.
Harley Davidson sells their motorcycle at the cost of 2 million Indian rupees, with that huge amount we can buy 2 ford cars in India. However we dont have money to buy 1 so let alone buying Harley Davidson
What's even more surprising is Ford announcing they will stop "car" production here in the U.S. sans the Mustang.
Last year I was considering buying ecosport in India when the JV talks were going on with Mahindra. But indecisive future of the company made me steer away. Soon after they left India. Dodged a bullet there 😅