Ford India Gains Ground at Home, in Export Markets

MUMBAI – After nearly four years of marking time, Ford India is moving quickly to reshape its Indian business and global reach.

To mark the beginning of its new role, Ford India has made a fresh investment of Rs50 billion ($770 million) in R&D, engineering and manufacturing, talent development, skills and business services. This adds to its Rs133 billion ($2 billion) investment in its plants at Chennai in Tamil Nadu state and Sanand in Gujarat state.

Further investments may be on the horizon. Ford in early September signed a memorandum of understanding at a Tamil Nadu global investors meeting to develop a 27-acre (11-ha) campus to support these new activities.

More than a year ago, both of Ford’s outgoing and incoming CEOs, Alan Mulally and Mark Fields, visited India and outlined the strategy for making the country a significant partner in the automaker’s global plans.

Mulally deemed Ford India as a centerpiece of compact-car production and an export hub.  Fields envisioned the automaker as a global Center of  Excellence for small cars and engines, noting the high level of talent among India’s engineers, its researchers’ skills and the dedication of its workforce.

They also learned Indian supply lines for Ford cars are efficient and inexpensive.

Their aim has been to reduce the cost of ownership of Ford cars and make more comfortable, enjoyable products for the Indian market.

Dave Schoch, president-Ford Asia Pacific and Nigel Harris, president and managing director-Ford India are implementing Mulally’s and Fields’ plans.

All the new Ford compact models offer stylish and efficient design; smart technologies including MyFord Dock, SYNC with AppLink and MyKey; electronic power-assisted steering; and functional interiors with more than 20 storage areas.

Ford India’s business profile has changed in recent years: Exports totaled 55,175 for the year ending in March, more than triple the 17,504 in the prior year, and the automaker plans to increase its export destinations from 35 to 50.

Light trucks’ share of total sales increased from 3% in 2011 to 66% in 2015, transforming Ford India from a car manufacturer to primarily a builder of light trucks.

The Figo hatchback provides a good example of a product popular both in India and in export markets. The gasoline-powered model offers fuel efficiency of 43.6 mpg (5.4 L/100 km) and the diesel achieves 60.3 mpg (3.9 L/100 km). The Figo features six airbags.

The new Gujarat plant has started producing the Figo Aspire compact sedan and soon will launch a new-generation Figo hatchback. Soon to follow will be the new Endeavour SUV and imported Mustang sports car.