The retreat of successful companies in the US as well as Europe in India

- The whole of economics: Dhawal Mehta

- Market research reports by foreign companies proved ineffective

The world famous American Ford Motor Company has decided to stop making cars in India - although it will continue the business of making car engines in India. Ford's decision will leave 200 people in India unemployed. During the fourth quarter of 2021 (October-December 2021), Ford will stop assembling cars at Sanand and stop manufacturing car engines at its Chennai factory during the April-June 303 quarter. The Ford Company had two large car manufacturing factories in Sanand and Chennai which will now close. Ford has lost જંગ 50 billion (કરોડ 1 billion) over the last ten years operating car manufacturing centers in Sanand and Chennai. His car did not sell well in India. Is. In 2013, Ford began negotiations to merge with Mahindra & Mahindra, but the merger did not materialize. People did not adopt Ford's Nano car. Nanam took them to Nano car.

Auto sector in India

Some foreign companies in India have reported losses in the auto sector. This has happened to three other foreign car companies in the last five years. Dealer General Motors departed from India in 2014, Harley Davidson departed from India in September 2020, and US Motorcycle departed from India in October 2015, and as seen above, Ford departed in September 2011. These companies did not understand the Indian market.

Running from Sanand Factory

Ford's Sanand factory initially produced 3,000 workers a day, with a total of 3,000 workers. As Ford's cars did not sell quickly, car production gradually declined, leaving the factory with only 500 to 2,000 workers, producing 200 cars a day. Surprisingly, even though Ford's factory operated only six days a month, the company paid workers a full month's wages. The labor union demands that 500 members of the company's trade union be included in the company's powertrain factory. The account is expected to run for another two years. Negotiations will be held with the union of the company for this. The above case study shows that successful companies in the US or Europe cannot be determined to be successful in India. The sales estimates of some foreign companies in India are wrong. The same thing happened with Ford Motor Company of India. In the case of the Ford Company and the above three companies, their market research findings, especially market forecasting estimates, were incorrect. The above case proves that nothing can be predicted with 100% certainty in the field of management.

Decades ago today, the Ford Company did a lot of deep market research and launched the 'Edsel' brand car in the American market, but it failed miserably. It also raised many questions on the methods of market research and the market research was discredited. Since then the methods of market research have become more realistic - many techniques of multiple correlations have evolved, especially due to computers.