Ford India Makes Profit Of 505 Crore Even After Stopping Production (Image: Ford.com)
The automaker who had winded up selling cars has now ended up posting a profit of Rs. 505crore. Ford Motor had been active in Indian business for 25 years before it decided to roll back. The company had stopped its production facility in India early last year. Now, report on its finances for the year 2022-23 has shown the impressive figure.
Reports say that among the reasons for this turnover, one could be the low expenses it now has on restructuring. CarToq reporting on this says that the other reason could be the notable increase in the volume to engine sales. The FY 2022-23 saw the company’s total revenues from operations at Rs7,079 crore, which was down by 31 percent when in comparison to the year before. The decision of 2021, to restructure also had an impact, with the expenses as a whole for this period registered at Rs 9,607 crore.
The figures for the company’s revenue have dropped down. For the FY 2023, the company’s total revenue, included its domestic sale of Rs. 980 crore and its export sales of Rs. 6,099 crore. The year 2021-22 had a total revenue from domestic sales at Rs 2,399 crore and export sales at Rs 7,802 crore. In the financial year, in volume terms, the automaker sold 17,219 cars and a remarkable number of engines at, 1,77,864. Looking at the previous year, the numbers were at 69,223 cars and 82,067 engines. The data shows a 75 percent decline in the number of vehicles sold and an astonishing increase of 117 percent of engines sold.
In the 2021, the automaker had stopped production because of piling losses. In 2022, though the production of EV’s were given a hand at, it did not work-out prompting the company into an exit mode. In July 2022, the company decided on exiting the Indian market. In January, 2023, the company’s Sanand plant in Gujarat was sold to Tata Motors, with Tata Passenger Electric Mobility Limited (TPEML) taking over, ensuring the employment of the workers. Of now, Ford India has leased back the building and land on mutually agreed terms and is operating there, said CarToq. The company had very popular models on the India roads, such as the Ikon, Figo and Eco Sport. Future plans of the company are not revealed yet, though it is expected that Ford could return to the market.
