Ford India

Ford India Private Limited

Company type	Subsidiary
Industry	Automotive
Predecessor	Mahindra Ford India Limited
Founded	1995
Defunct	2021
Fate	Ceased manufacturing operations in India; manufacturing plant sold to Tata Motors in 2022
Headquarters	Sholinganallur, Chennai, Tamil Nadu , India
Area served	India
Products	Automobiles, automotive parts, extended warranty services
Owner	Ford Motor Company
Parent	Ford Motor Company

Ford India Private Limited operates as a subsidiary of Ford Motor Company within the Indian market, with its headquarters situated in Sholinganallur, Chennai, Tamil Nadu. The company formerly managed production facilities located in Sanand, Gujarat. On 9 September 2021, Ford decided to withdraw from the Indian market, citing fierce competition and global economic difficulties that led to diminished demand.

On 8 August 2022, Ford completed the sale of its manufacturing plant in Gujarat to Tata Motors for INR 7.26 billion (around US$91.5 million). Since ceasing local production in 2021, Ford India has concentrated on maintaining its service infrastructure, importing and distributing automotive components, and offering extended warranty services.

Additionally, Ford India arranged to lease back certain facilities at the Gujarat plant from Tata Motors to sustain limited engine production aimed at export markets as of 2025. The company still owns the shuttered Chennai manufacturing site and intends to reveal plans for its future utilization during 2025.

History

The origins of Ford India Private Limited date back to 1926 when it began operations as a subsidiary of the Ford Motor Company of Canada. However, this initial entity was dissolved in May 1953 due to stringent import restrictions affecting the automotive sector in India. Ford reestablished its presence in October 1995 under the name Mahindra Ford India Limited (MFIL), formed as an equal partnership with Mahindra & Mahindra Limited. By March 1998, Ford had increased its ownership stake to 72%, prompting a rebranding to Ford India Private Limited. By April 2012, cumulative investments since 1995 had reached $2 billion.

Throughout its tenure in India, Ford introduced multiple models including the sixth-generation European Ford Escort and the Ford Ikon, followed by the second generation Ford Mondeo (second generation). The company's first SUV offering arrived in 2003 with the Endeavour, initially derived from the Mazda-based Ford Ranger pickup platform; its second generation was based on the global T6 Ranger. In late 2004, Ford launched the European Ford Fusion, which pioneered India's crossover segment with its "Urban Activity Vehicle" concept, marketed as The-No-Nonsense-Car.

The Ford Fiesta sedan gained significant popularity and strong sales figures. Subsequently, Ford introduced the Ford Figo, developed from the sixth-generation Fiesta hatchback. Capitalizing on India's favorable tax regime for vehicles under four meters in length, Ford brought the Ford EcoSport crossover to market, exporting it from India to both European and American markets. The second-generation Ford Figo was initially launched as the sedan variant named Ford Figo Aspire, which became Ford's sole sedan offering in India after discontinuing the Fiesta; this was followed later by a hatchback version. To fill the gap between the Figo and EcoSport models, Ford introduced the Ford Freestyle, a crossover adaptation of the facelifted Figo hatchback, in 2018.

In 2019, Ford entered negotiations with Mahindra & Mahindra regarding a potential joint venture; however, these discussions were terminated by April 2021.

By September 2021, Ford declared its decision to cease all domestic manufacturing operations in India. Following this move, Kotak Mahindra Prime acquired Ford Credit India's vehicle financing portfolio in December 2021.

Manufacturing facilities

Ford India's main production facility is located in Maraimalai Nagar, approximately 45 km from Chennai. This plant has the capability to manufacture 150,000 vehicles annually operating two shifts, which can be increased to 200,000 units with the addition of a third shift. During the 2010–11 period, the plant's output surpassed 100,000 vehicles.

After launching the Ford Figo in March 2010, Ford Motor Company committed $500 million to expand the plant’s capacity to 200,000 cars per year and to establish an engine manufacturing unit capable of producing 250,000 engines annually. The engine facility commenced operations in January 2010. By 2012, a further $72 million investment raised the engine production capacity to 330,000 units.

In June 2013, the Ford EcoSport was launched with a $142 million investment, allowing the Chennai factory to achieve an annual output of 200,000 vehicles.

As part of its plan to introduce eight new models by 2015, Ford allocated $1 billion towards constructing a new manufacturing site in Sanand, Gujarat, spanning 460 acres. This facility was designed with an engine production capacity of 270,000 units and vehicle assembly capacity of 240,000 units annually and began operations in 2014. Upon reaching full operational scale, Ford India anticipated a combined production capacity of 440,000 vehicles and 610,000 engines yearly. In May 2022, Tata Motors entered into an agreement to acquire this plant.

In September 2021, Ford declared its decision to halt manufacturing activities in India due to sustained financial losses and lack of profitability.

By February 2022, Ford had plans to return to the Indian market as an electric vehicle manufacturer; however, these intentions were indefinitely postponed by May of the same year.

Following the shutdown of the Chennai facility, Ford India engaged in negotiations with the workers' union regarding severance arrangements; the final proposal was submitted in September 2022.

Discontinued

Model	Released	Discontinued	Image	Notes
Escort	1996	2001
Ikon	1999	2010
Mondeo	2001	2006		Imported
Endeavour	2003	2021
Fusion	2004	2010
Fiesta/Classic	2005	2015
Figo	2010	2021
Global Fiesta	2011	2015
EcoSport	2013	2021
Figo Aspire	2015	2021
Mustang	2016	2021		Imported
Freestyle	2018	2021

Sales and service network

By April 2016, Ford maintained a network exceeding 376 sales and service centers spread across 209 cities within India.

Sales performance

In 2010, Ford India Private Limited (FIPL) recorded vehicle sales totaling 83,887 units—a remarkable rise of 172% compared to the 29,488 units sold in 2009. The following years saw fluctuations in sales volumes and market share as outlined below:

Calendar Year	Sales	Market Share

Exports

Ford India shipped approximately 40% of its engine output and one-quarter of its vehicles to a network of 35 countries, including the United States, Canada, Mexico, Saudi Arabia, South Africa, the UAE, along with various markets across Africa and the Middle East.

Corporate social responsibility

The corporate social responsibility initiatives of Ford India concentrate on four primary pillars: enhancing road safety, advancing education, improving healthcare services, and promoting environmental sustainability.