Recently Ford Motors announced that it will exit from Indian car market. By 2022 it will wrap up its last plant in Chennai. Ford india will end its 25 year run in Indian market. But it will continue to import its high end cars in India, for eg:- Mustang,Ranger. In past five years it will be third US based automobile company to leave India, previously General Motors and bike manufacturing company Harley Davidson. General Motors' Chevrolet had a good run in India. It is clear that US based automobiles do not attract Indian masses.
Overall the automobile sector has performed very poorly in last 5 years not only in India and this COVID-19 pandemic became worst for the automobile sector.
Ford launched its first car in India in 1996 was Ford Escort in 1996 it didn;t became popular and have to end in 1999. in 1999, it launched its first popular and selling car, Ford Ikon. After than Ford launched several cars for indian market but it didn't succeed in indian market. Ford with Figo and Fusion tried to cope up with Indian market, but they didn't get success at that with compare of Ikon. Ford Endevour with its muscular look entered in SUV market, it also had a good run. Then in 2013 it launced its ever popular compact SUV car, Ecosport which covered the compact SUV market in INDIA. Even though Ford is exiting the Indian market, but this car had hold the popularity among Indians. Even though Ford couldn't evade Indian market.
Why Ford couldn't compete in Indian market?
Many have even stated the reasons otherwise, it is due to policy of current govt. that this MNC companies couldn't do business. One need to remind them that Suzuki, a Japanese automobile comany is the king of this Car Industry in India, with 48% market share , totally dominating the Indian car market for past 30 years. Hyundai, a South korean Company with 17% market share in Indian car Industry holds the 2nd position and is in Indian Market for around 25 years. This reason is not acceptable.
Ford lacks foremost in services, it only have hardly 308 service centre in India, whereas Maruti And Hyundai have 3500 and 1500 service centre respectively. Kia Motors launched 2 years ago , managed to open nearly 200 service centres in India.
Indians are very price sensitive during the car buying, that means a compact car with low price is their prefence and only Asian car makers can only make such cars not U.S. companies.
They even don't bring new models every year. Ford brings new model at very large gap. They announced that they will bring 3 new models by 2002. In same period Maruti and Hyundai will bring 8 new models.
This all are brought to masses by mouth publicity, and that's make Indian market hard to crack.