Ford’s exit from India: How it affects existing customers

While this is not a complete walkout for Ford India as the brand will sell premium imported models and continue production for exports, customers fear how much after sales and spare part availability will be taken care of and how bad it will be on resale. will have an effect.


Ford last week announced the closure of its operations in India

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Ford last week announced the closure of its operations in India

Ford’s shutdown of production at its Indian plants came as a huge blow to not only its employees but also its customers. This has left Ford’s existing customers concerned about the after-sales and resale value of their cars. These existing products will cease to be sold once existing dealer inventory is sold but Ford’s dealer network will continue to offer parts and service support and warranty packages. But in the past, the experience was not pleasant for customers of brands like Opel and Chevrolet exiting the Indian market. Both companies sold their manufacturing facilities to new entrants and the dealerships soon closed. And that’s exactly what Ford customers are fearing now.

Read also: Ford India ends local vehicle production: All you need to know

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It will maintain the spare part depots of metro cities

Speaking to carandbike, auto industry veteran Nikunj Sanghi said, “The exit came very suddenly and was a big surprise. This will certainly have a huge impact on spare parts availability as we have seen in the past with other brands that have left our market. Although the company has said that aftersales and spare parts will be taken care of for a long time, this is not going to happen. Even the resale value of the cars will be heavily impacted and just imagine the plight of the customers who bought Ford cars this year. The depreciation value for those models would be huge.”

Similarly, Sridhar V, Partner and Practice Leader – Grant Thornton said, “Ford sold over a million cars in India in the last 20 odd years and some of them are still running, the availability of spare parts is a big factor. will be the issue. support period. Not to mention that it will take a toll on the resale value of these models especially in tier 2 cities where there are already a limited number of Ford dealerships and the brand is likely to be shut down further. Spare parts availability may not be a concern for some models, which are retailed in global markets, as there is an option to import them, this could be a big concern for India-centric models.

Read also: Ford will shut down local production in India, both plants closed

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It will continue with after sales service and warranty package

While for models such as the Ford Endeavor that are sold overseas, spare parts can still be arranged through imports and supplies will also be maintained as they will be available at the Sanand plant for engines and mechanicals for models such as the Ranger which The mechanicals are shared, but it will be a big challenge for models like the Figo Aspire and the EcoSport. The carmaker has said that it will maintain its parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata.

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So it is not a complete walkout for Ford India. The company will continue to manufacture vehicles for the export market at its Sanand plant till the end of 2021. For the Chennai plant, which will continue to make engines and vehicles for the export market until the second quarter of 2022. However, Ford’s Sanand Engine Plant will continue to produce and export engines for the Ranger pickup truck.

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