Even as it is gearing up to launch its much awaited small car in 2010, Ford has indicated a new aggressive approach to beef up its share in the intensely competitive Indian car market.
The new-found aggression stems from its decision to enter the small car segment, which constitutes 70 per cent of the Indian car market. Though a long delayed one, the decision on small cars underscores the emergence of India as a key constituent of Ford’s global strategy. Ford had taken a ‘beaten track’ in India, admitted its Managing Director Michael Boneham. However, he asserted that his company had navigated carefully while doing so. He saw massive growth opportunities in countries like China and India than in the traditional markets like the U.S. and Australia.
In an informal chat with presspersons here on Monday, Mr. Boneham dropped enough hints to indicate the new aggression in Ford’s approach to India. More often than not, there was a huge hiatus between two launches at Ford India. This would change now, he promised. Post-small car launch, there would be frequent fresh launches – it could be variants of existing models or entirely new models. The imminent entry into the small car segment has also re-drawn its game plan. And, the global financial meltdown has only accentuated this rejig process. “I see significant opportunities for exports as well as growth inside the country,” he said. In this context, he pointed to China, which had emerged as a bigger market than the U.S. in the last six months.
Fielding a range of questions, the Managing Director said Ford had just begun exporting fully-built cars from the Chennai Port. It had shipped out around 170 vehicles from the Chennai Port to South Africa. By early next year, Ford would be in a position to move all its exports via the Chennai Port, he said. “It is cheaper to ship from Chennai. It is also a sensible option for us,” Mr. Boneham said. Currently, Ford is using the Mumbai Port to route its exports. He was confident that logistics-related issues in moving cars from its plant to the Chennai Port would be addressed soon.
Quizzed on the challenges ahead for the company, Mr. Boneham said the big challenge for the company lay in the fact that it was about to enter a segment where it had not been present hitherto. "It is an extremely competitive, price sensitive and value conscious segment," he said. Entering the turf (small car space) offered both a challenge as well as an opportunity, he pointed out. The Managing Director felt India was fairly insulated from the impact of the global meltdown. This was evident from the eight per cent growth in the passenger car segment, he added. Ford had received positive feedback from its "marketability clinic" exercise. The Ford brand had emerged a competitive one from the angle of cost of ownership, he said. Ford India, had stepped up automation in areas where the processes were difficult, he said. The level of automation in the body shop compared favourably with Ford factories in other Asia Pacific countries, he added.
