Ford was supposed to launch its EcoSport Facelift this festive season. The new model was being developed in the Chennai plant and had been spotted being tested a few times. This was supposed to be EcoSport’s first facelift in eight years. However, the company decided to cancel the launch in an aftermath of their exit from India.

Why did Ford decide to move out of India?

2021 Ford Eco Sport Undisguised // Source

The car giant had been struggling with sales in India. According to Ford’s official statement, the company decided to move out of India due to years of losses, industry overcapacity and slow growth in the country’s automobile sector.

The company has not been able to make sustainable profits in India due to the country’s preference for low range vehicles and the high taxes imposed by the government; a struggle many foreign manufacturers face.

Ford tied up with Mahindra & Mahindra to cut manufacturing costs in India. However, the venture failed and Ford faced a loss of $2 billion. The company was also open to sharing its plant with other car manufacturers. However, other car manufacturers prefer having their own plants in India.

Why did Ford cancel the EcoSport Launch?

Ford-EcoSport-Facelift-2-
Ford-EcoSport-Facelift-2-

The EcoSport has been one of Ford’s most important cars in India. The EcoSport was India’s first compact SUV and it has been around for 8 years. The 2021 facelift was supposed to be launched with a 1.2-litre Mahindra mStallion petrol engine that would have made EcoSport the most powerful compact SUV in India. Since the partnership between Ford and Mahindra failed, Ford had to cancel the EcoSport Launch.

Will Ford still be available in India?

The multinational giant has said they will continue to sell in India. The company will now focus on selling Completely Built Units (CBU) in the country. Ford will continue to provide customer support and dealerships will function as per normal. Importing costs may increase the price of Ford vehicles in India.

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