Finshots Daily Why Ford just can’t let go of India
10 snips
Oct 16, 2025 Why is Ford eyeing a comeback in India after a four-year hiatus? They pioneered the sub-4 meter SUV trend with the EcoSport but faced hefty losses from a $2 billion investment. Despite initial setbacks and underutilization of their Chennai plant, there are plans to revamp it for engine exports. Trade policy and tariffs add complexity, while local players dominate the market. Ford aims to rebuild trust with a strong service network, but the road ahead requires better localization and effective tariffs management.
AI Snips
Chapters
Transcript
Episode notes
EcoSport Kickstarted India’s Compact SUV Boom
- Ford's EcoSport pioneered the compact sub-4-meter SUV segment in India after its 2013 launch.
- That model exploited tax rules and helped create today's hottest car category.
Tax Policy Created The Compact SUV Market
- India's tax incentives for cars under 4 meters created a market niche for compact SUVs.
- That policy shift turned compact SUVs into the country's dominant, best-selling vehicle segment.
Two Decades, Two Plants, And A Costly Exit
- Ford entered India in 1995 and invested nearly $2 billion building two large plants over two decades.
- By FY23 it exited after accumulating more than $2 billion in losses and closing its last plant.