Following its exit from the domestic Indian car market in FY22, the US automaker Ford
India managed to achieve a profit of Rs 505 crore in FY23, primarily driven by exports of
vehicles and engines before closing its vehicle manufacturing operations in the country.
India managed to achieve a profit of Rs 505 crore in FY23, primarily driven by exports of
vehicles and engines before closing its vehicle manufacturing operations in the country.
In the fiscal year 2022-23, the company’s revenues from operations amounted to Rs
7,079 crore, marking a 31% decline compared to FY22 revenues. The directors’ report,
obtained from business analytics firm Tofler, disclosed total expenses of Rs 9,607 crore
for the fiscal year.
7,079 crore, marking a 31% decline compared to FY22 revenues. The directors’ report,
obtained from business analytics firm Tofler, disclosed total expenses of Rs 9,607 crore
for the fiscal year.
In its 28th annual report, Ford India’s director’s report acknowledged that the financial
performance for FY23 was significantly influenced by the restructuring decision made in
September 2021, which resulted in the cessation of vehicle and engine manufacturing
operations in Chennai and vehicle manufacturing in Sanand.
performance for FY23 was significantly influenced by the restructuring decision made in
September 2021, which resulted in the cessation of vehicle and engine manufacturing
operations in Chennai and vehicle manufacturing in Sanand.
The report indicated, “The total revenue from operations included domestic sales of Rs
980 crore and export sales of Rs 6,099 crore, which was 59% and 22% lower than the
prior year of Rs 2,399 crore and 7,802 crore.”
980 crore and export sales of Rs 6,099 crore, which was 59% and 22% lower than the
prior year of Rs 2,399 crore and 7,802 crore.”
In terms of sales volume, Ford India sold 17,219 vehicles and 177,864 engines during
the reviewed fiscal year, a significant decrease of 75% for vehicles and a notable
increase of 117% for engines compared to the previous fiscal year.
the reviewed fiscal year, a significant decrease of 75% for vehicles and a notable
increase of 117% for engines compared to the previous fiscal year.
The director’s note added, “The net profit during the financial year under review, the
Company made a Profit after Tax including exceptional items of Rs 505 crore as against
the previous year’s net loss of Rs (4,226) crore, primarily driven by a decrease on
account of restructuring expenses and higher engine volume sales.”
Company made a Profit after Tax including exceptional items of Rs 505 crore as against
the previous year’s net loss of Rs (4,226) crore, primarily driven by a decrease on
account of restructuring expenses and higher engine volume sales.”
Furthermore, in FY23, the sale of the Sanand plant to Tata Motors was concluded,
allowing for sustainable global operations. Tata Passenger Electric Mobility Limited
(TPEML), a subsidiary of Tata Motors Ltd (TML), acquired Ford India Private Limited’s
vehicle manufacturing plant in Sanand, Gujarat. Ford India retained operation of the
Sanand Powertrain Manufacturing Facility through a lease agreement with TPEML.
allowing for sustainable global operations. Tata Passenger Electric Mobility Limited
(TPEML), a subsidiary of Tata Motors Ltd (TML), acquired Ford India Private Limited’s
vehicle manufacturing plant in Sanand, Gujarat. Ford India retained operation of the
Sanand Powertrain Manufacturing Facility through a lease agreement with TPEML.
Ford India is actively exploring potential buyers for its Maraimalai Nagar plant, with
reported engagement with companies like Vietnamese automaker VinFast and the JSW
Group for a potential sale.
reported engagement with companies like Vietnamese automaker VinFast and the JSW
Group for a potential sale.
Although the company managed to turn a profit, it is contemplating a re-entry into the
high-end electric vehicle segment in the coming years, contingent on global market
conditions, even as it ceased production in India in July 2022 due to sustained losses
and lack of profitability prospects.
high-end electric vehicle segment in the coming years, contingent on global market
conditions, even as it ceased production in India in July 2022 due to sustained losses
and lack of profitability prospects.
In September 2021, Ford India had initially announced its decision to halt production in
India. Despite briefly considering electric vehicle production in February 2022, these
plans were eventually abandoned in May 2022. The company officially ceased vehicle
production when the last EcoSport SUV rolled off the Chennai production line in July
2022, primarily intended for export markets.
India. Despite briefly considering electric vehicle production in February 2022, these
plans were eventually abandoned in May 2022. The company officially ceased vehicle
production when the last EcoSport SUV rolled off the Chennai production line in July
2022, primarily intended for export markets.
Following the closure of Ford’s Chennai plant, negotiations with the workers’ union in
September 2022 paved the way for a smoother exit, contrasting with the more
challenging exit strategy employed by its competitor, General Motors, in India.The report indicated, “The total revenue from operations included domestic sales of Rs
September 2022 paved the way for a smoother exit, contrasting with the more
challenging exit strategy employed by its competitor, General Motors, in India.The report indicated, “The total revenue from operations included domestic sales of Rs
980 crore and export sales of Rs 6,099 crore, which was 59% and 22% lower than the
prior year of Rs 2,399 crore and 7,802 crore.”
prior year of Rs 2,399 crore and 7,802 crore.”
In terms of sales volume, Ford India sold 17,219 vehicles and 177,864 engines during
the reviewed fiscal year, a significant decrease of 75% for vehicles and a notable
increase of 117% for engines compared to the previous fiscal year.
The director’s note added, “The net profit during the financial year under review, the
Company made a Profit after Tax including exceptional items of Rs 505 crore as against
the previous year’s net loss of Rs (4,226) crore, primarily driven by a decrease on
account of restructuring expenses and higher engine volume sales.”
the reviewed fiscal year, a significant decrease of 75% for vehicles and a notable
increase of 117% for engines compared to the previous fiscal year.
The director’s note added, “The net profit during the financial year under review, the
Company made a Profit after Tax including exceptional items of Rs 505 crore as against
the previous year’s net loss of Rs (4,226) crore, primarily driven by a decrease on
account of restructuring expenses and higher engine volume sales.”
Furthermore, in FY23, the sale of the Sanand plant to Tata Motors was concluded,
allowing for sustainable global operations. Tata Passenger Electric Mobility Limited
(TPEML), a subsidiary of Tata Motors Ltd (TML), acquired Ford India Private Limited’s
vehicle manufacturing plant in Sanand, Gujarat. Ford India retained operation of the
Sanand Powertrain Manufacturing Facility through a lease agreement with TPEML.
Ford India is actively exploring potential buyers for its Maraimalai Nagar plant, with
reported engagement with companies like Vietnamese automaker VinFast and the JSW
Group for a potential sale.
allowing for sustainable global operations. Tata Passenger Electric Mobility Limited
(TPEML), a subsidiary of Tata Motors Ltd (TML), acquired Ford India Private Limited’s
vehicle manufacturing plant in Sanand, Gujarat. Ford India retained operation of the
Sanand Powertrain Manufacturing Facility through a lease agreement with TPEML.
Ford India is actively exploring potential buyers for its Maraimalai Nagar plant, with
reported engagement with companies like Vietnamese automaker VinFast and the JSW
Group for a potential sale.
Although the company managed to turn a profit, it is contemplating a re-entry into the
high-end electric vehicle segment in the coming years, contingent on global market
conditions, even as it ceased production in India in July 2022 due to sustained losses
and lack of profitability prospects.
high-end electric vehicle segment in the coming years, contingent on global market
conditions, even as it ceased production in India in July 2022 due to sustained losses
and lack of profitability prospects.
In September 2021, Ford India had initially announced its decision to halt production in
India. Despite briefly considering electric vehicle production in February 2022, these
plans were eventually abandoned in May 2022. The company officially ceased vehicle
production when the last EcoSport SUV rolled off the Chennai production line in July
2022, primarily intended for export markets.
India. Despite briefly considering electric vehicle production in February 2022, these
plans were eventually abandoned in May 2022. The company officially ceased vehicle
production when the last EcoSport SUV rolled off the Chennai production line in July
2022, primarily intended for export markets.
Following the closure of Ford’s Chennai plant, negotiations with the workers’ union in
September 2022 paved the way for a smoother exit, contrasting with the more
challenging exit strategy employed by its competitor, General Motors, in India
September 2022 paved the way for a smoother exit, contrasting with the more
challenging exit strategy employed by its competitor, General Motors, in India
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