India Key Player in Ford’s Small-Car Growth Strategy

MUMBAI – Ford is aggressively building its global compact-car base in India, matching new models to its understanding of the dynamics of the local market and awareness of changing consumer preferences.

After observing 3½ years of the Figo compact car’s success in both domestic and export markets and three months of positive response to the EcoSport compact cross/utility vehicle, the auto maker is growing India as a competitive production base.

Ford’s new plant at Sanand in Gujarat state goes onstream in 2014 with production of three compact cars on a single platform codenamed B 562.

The auto maker is not disclosing its production plans. But indications are that one vehicle is a hatchback version of the Figo, another is powered by a 1.2L engine and will face the popular Maruti Suzuki Swift Dzire and Honda Amaze, and a third with a 1.4L engine is expected to replace Ford’s dated Fiesta Classic.

Each car will be less than 157 ins. (400 cm) long to qualify for the lowest tax bracket. Their benchmark is the EcoSport, with its attractive styling, competent engine and excellent ride and handling.

Ford India expects to reach annual production of 200,000 units, half of which may be exported, on this platform. The auto maker plans to use the platform to produce at least eight to 10 new models over time.

If these plans materialize, Ford India may significantly raise its India market share from the current 3%-4%, aided by a network of 260 dealers, half of which are located outside India’s seven largest cities. “We have good footfalls in these outlets,” Executive Director Vinay Piparsania says.

The auto maker’s confidence that it will improve is based on the Sanand plant’s technology that equals, and in some cases exceeds, that of its other global facilities; projected production volumes that will minimize costs; and a focus on customer expectations enabling it to challenge rivals such as Maruti Suzuki and Renault Nissan India.