Three years ago, the US automaker stopped making cars in India due to problems growing sales in a market dominated by Asian rivals.
Ford is considering restarting car manufacturing in India, this time with a focus on exports. The company stopped making cars in the country in 2021 due to weak demand and losses, but is now in talks with the Tamil Nadu government. The Financial Times reported this on Friday, September 13.
It is stated that at the time of the stop, Ford has two production sites in India, but has less than 2% of the passenger car market in the country, despite more than 20 years of efforts to achieve profitability . When production was closed, about 4 thousand workers were laid off.
Trying to create more jobs for its large and frustrated youth workforce, India is trying to attract new investment by offering reduced tariffs on expensive imported electric cars to companies that commit to making these in the country for three years.
“This region has cheap labor, which will reduce production costs and compete with Asian car brands in the global market,” the publication wrote.
Ford shares were up 0.4% in early trading on Friday. Since the beginning of this year, their value has decreased by 12.9%.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.