Ford's India Exit: How It Affects Existing Customers

Ford's ceasing production at its Indian plants came as a big blow to not only its employees but also its customers. It has left Ford's existing customers worried about aftersales and resale value of their cars. Sales of these current products will cease once existing dealer inventories are sold out but Ford's dealer network will continue to offer parts and service support and warranty package. But in the past, experience for customers of brands like Opel and Chevrolet that exited the Indian market wasn't pleasant. Both companies ended up selling off their manufacturing facilities to new entrants and dealerships were shut soon after. And this exactly is what Ford customers are now fearing.

Also Read: Ford India Ending Local Vehicle Production: All You Need To Know​

It will maintain spare part depots is metro cities

Speaking to carandbike, Auto Industry veteran Nikunj Sanghi said, “The exit came too suddenly and was a big surprise. It will definitely have huge impact on spare parts availability as we have seen in the past with other brands that left our market. Though the company has said that aftersales and spare parts will be taken care of for a longer duration but that doesn't end up happening. Even resale value of cars will take a huge hit and just imagine the plight of customers who bought Ford cars just this year. Depreciation value for those models will be huge.”

On similar lines, Sridhar V, Partner and Practice Leader- Grant Thornton said, “In the last 20 odd years Ford sold over a million cars in India and while some of them are still running, spare parts availability will be a huge issue beyond the support period. Not to mention that it will further take a toll on resale value of these models especially in Tier 2 cities where there already are limited number of Ford dealerships and the brand is likely to further wind up. Spare parts availability for some models may not be a concern say which are retailed in global markets, since there is an option of importing them, it could be a larger concern for India centric models.”

Also Read: Ford To Cease Local Production In India, Shut Down Both Plants​

It will continue with aftersales service and warranty package

While for models like the Ford Endeavour which is sold overseas, spare parts could be still arranged by the way of import and supply too will be maintained since those engines and mechanicals will be available at its Sanand plant for models like the Ranger which shares mechanicals, but for models like the Figo Aspire and Ecosport, It'll be a huge challenge. The carmaker has said that it will maintain its parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata.

So it isn't a complete walkout for Ford India. The company will continue to make vehicles for the export market at its Sanand plant until the end of 2021. As for the Chennai plant, that will continue to make engines and vehicles for the export market till the second quarter of 2022. However, Ford's Sanand Engine plant will continue to produce and export engines for the Ranger pickup truck.