When Ford Motor Company announced its exit from India in 2021, it was seen as the end of an era. The brand that gave India some of its most beloved cars — the EcoSport, the Figo, and the Endeavour — shut down production after two decades of mixed fortunes. But now, the Detroit-based automaker is reportedly planning a return. The question is: why does Ford still want a piece of the Indian market it once left behind?
The Legacy Ford Left Behind
Ford’s story in India began with promise. It entered the market in the mid-1990s, during the country’s liberalisation boom, bringing global engineering and design standards to an emerging consumer base. The launch of the EcoSport in 2013 changed the game. It wasn’t just another car — it created an entirely new segment: the compact SUV.
At the time, India’s auto policy had introduced lower excise duties for cars shorter than four metres, with small engines, to encourage affordable production. Ford saw the gap and capitalised on it. The EcoSport became an instant success and inspired every major automaker — from Maruti Suzuki to Hyundai — to launch their own compact SUV.
Ironically, the segment Ford pioneered is now India’s hottest and most profitable. Yet the company itself was nowhere to be found on Indian roads after 2021.
Why Ford Left in the First Place
Ford’s India exit was driven by years of heavy losses, inconsistent strategy, and poor localisation. While its cars were praised for quality and performance, they struggled to compete on price and after-sales service — two key factors that dominate Indian car-buying decisions.
The company shut down both its Chennai and Sanand plants after failing to find a sustainable path to profitability. At the time, Ford said it would focus only on niche imports through the Completely Built Unit (CBU) route, such as the Mustang, but even that fizzled out over time.
Why Ford Wants Back In
Fast forward to 2025, and the landscape looks very different. India is now the world’s third-largest automobile market, surpassing Japan, with over 4 million passenger vehicles sold annually. Electric vehicles, compact SUVs, and hybrid cars are driving record demand.
Sources suggest Ford is eyeing a re-entry through electric and hybrid models, leveraging its global expertise in EV technology. The company still owns its Chennai and Sanand facilities, which could serve as strategic production bases for both domestic sales and exports.
Another reason for Ford’s renewed interest is India’s favourable export geography. With strong trade links across Asia, Africa, and the Middle East, India could become a hub for cost-effective global manufacturing — a move that aligns perfectly with Ford’s long-term strategy.
Learning From Past Mistakes
If Ford returns, it will likely avoid its old missteps. Instead of focusing solely on petrol SUVs and sedans, the brand is expected to prioritise localisation, electric mobility, and connected car technology.
The company could also tap into India’s thriving EV ecosystem, where rivals like Tata Motors and Mahindra are rapidly gaining ground. Given Ford’s expertise in EVs through its F-150 Lightning and Mustang Mach-E, a strong comeback in India’s evolving market seems not only possible but strategically necessary.
A Market Too Big to Ignore
India’s middle class is expanding faster than ever, with rising disposable incomes and growing aspirations for premium vehicles. The government’s push for green mobility and Make in India incentives further strengthen the case for global automakers to reinvest.
For Ford, this isn’t just about reclaiming market share — it’s about being part of the next automotive revolution. The company that once defined India’s compact SUV wave now wants to lead its electric transformation.
Whether the comeback succeeds will depend on how well Ford adapts to India’s dynamic market — this time with patience, pricing, and partnerships that work.
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