Asian Tech Press (Sep 10) -- American automaker Ford Motor Co (F: NYSE) announced Thursday that it will stop producing cars in India and close two plants there, becoming the latest automaker to exit the Indian market.

Under the restructuring plan, the Sanand vehicle assembly plant in Gujarat will be closed by the end of 2021, and the Chennai engine and car assembly plant will be closed in mid-2022.

Ford currently employs more than 11,000 people in India, and 4,000 employees are expected to be affected by this restructuring of operations in India. And the company expects to account for about $2 billion in expenses related to the restructuring.

It is understood that Ford began operating in India in 1995 and has invested more than $2 billion in the country over the past 25 years.

However, Ford India has accumulated losses of more than $2 billion over the past 10 years, including losses of $800 million in 2019 alone.

And Reuters has reported that Ford has worked hard for years to win over Indian consumers, but has only gained less than 2% of the Indian passenger car market.

As a result, Ford announced to stop the business of manufacturing in India and shift from manufacturing in India to importing and selling, but retaining the production business of engines for export.