Ford will stop producing vehicles in India and close both of its factories in the country. Ford said that its facilities in Gujarat and Tamil Nadu will close in the second quarter of 2022, but that it would continue to produce vehicle engines for export.

The company is the most recent major automobile manufacturer to exit India in recent years. General Motors (GM) discontinued producing vehicles for the Indian market in 2017.

Last year, Harley-Davidson ceased production and drastically reduced its sales activities in the world’s largest motorbike market. These departures have dealt a setback to Indian Prime Minister Narendra Modi’s efforts to entice or keep international manufacturers in the country.

Ford claimed it had lost more than $2 billion in India over the last decade and that demand for new vehicles had decreased. The automaker, which produced five models for the local market, stated that current customers will continue to get maintenance, parts, and warranty assistance.

Ford said the exit is part of its wider global strategy, which will include a “shift to iconic global vehicles and electrified SUVs in the future.” However, it is unclear whether these would be produced in India.

Ford has been producing automobiles in India for 25 years, but it has failed to keep up with the competition. According to estimates, the company has a market share of less than 2% of the passenger vehicle industry and is rated ninth among the country’s largest automakers.