Ford's decision does not mean the country's business environment is unfair

Statement made by an official source on condition of anonymity

The American company decided to stop production in view of the competition between Japanese and Korean companies

New Delhi: A day after Ford's surprise announcement to stop manufacturing vehicles in India, a senior government source said the company's decision does not prove that the country's business policy has failed and the business environment in the country is bad.

The official, who did not want to be named, further said that the company has decided to stop production of vehicles in India in view of the competition between Japanese and Korean car companies.

Ford Motor announced yesterday that it would close two manufacturing plants in India and sell only imported cars in the country. Ford has set up two plants in Chennai, Tamil Nadu and Sanand, Gujarat with an investment of 2.5 2.5 billion.

The plant produced cars called EcoSport, Figo and Aspire. Sales of these cars in India will now be discontinued. The official further said that the growth story of India's automobile sector is alive. Demand for the automobile sector will remain the same in the domestic and export markets.