Ford’s exit from India is thanks to operational reasons and not a mirrored image on the country’s economy or automotive sector, a top government official has said after the American auto major announced it had been shutting down units within the country following huge losses and “lack of growth during a difficult market”.

“Ford’s decision to finish manufacturing is thanks to operational reasons and due to competition from Japanese and Korean car makers,” the official was quoted as saying by CNBC-TV18. The official requested anonymity.

The US carmaker’s decision was driven by operational inefficiency within the market which has attracted quite $35 billion in investments in six years, consistent with the report.

“Automotive sector continues to draw in billions of dollars in investment, and Indian economy and auto sector still be great success story,” the official said.

Ford had on September 9 said it’s “forced” to finish manufacturing operations in India and shut plants at Sanand and Chennai, thanks to “huge accumulated losses and lack of growth during a difficult market”.

Ford will wind down the manufacturing of vehicles for exports in Sanand, Gujarat by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022.

This is the second major exit of local manufacturing operations in India by a worldwide automotive brand after General Motors stopped selling cars in India in 2017.