Ford accelerating drive to make India global export hub
05 Sep 2013
US car giant Ford yesterday said it was accelerating its drive to make India its global export hub as demand for small cars and sports utility vehicles surges in Asia and Africa, AFP reports.
Ford, which lost ground in Asia, to rivals' smaller, cheaper vehicles, is revamping its strategy with a shift to smaller cars and SUVs, the report said.
Even as a sharp downturn gripped the market in India, Dave Schoch, president of Ford Asia Pacific, announced on the sidelines of an auto conference in New Delhi that the company was looking at the subcontinent as a "long-term investment".
"Despite current macroeconomic factors and ongoing market challenges, India is a big part of our global strategy," he told reporters.
Ford in the midst of the biggest industrial revamp in half a century, is setting up facilities in India, China and Thailand, as it seeks to meet demand in what is set to emerge as a key economic growth zone.
Ford is banking on a lower cost base and skilled manpower to increase output and meet demand in the zone.
By 2020, Ford expects demand for small vehicles to account for 60 per cent of the market globally, with Asia and Africa representing half the global volume.
Meanwhile, according to cartrade.com, the Indian car market had, for a long time been dominated by the hatchback segment and the consumer preference was quite understandable as hatchbacks were compact, affordable, fuel efficient and well suited to driving conditions in the country.
This was not lost on the top two companies in the passenger car market, Maruti Suzuki and Hyundai, which generated huge revenues from their hatchback models.
However, there was another segment that was slowly and steadily catching the attention of a lot of buyers - Sports Utility Vehicles (SUVs).
Experts point out that in the current scenario, it was advisable for a buyer to purchase an SUV, which was powerful, spacious and which also made a statement with its road presence, according to cartrade.com
Ownership of an SUV was considered to be something of a luxury for people in India. The SUV was synonymous with class, which determined the economic status of an individual.
However, things had changed, and makers of SUVs realised the importance of targeting the price sensitive buyers of the Indian car market, which has led to the rise to the compact SUV segment.
Experts say the times had changed and with the change the standard of living and income levels of people had improved, with affordability in terms of purchasing cars increasing among Indian buyers.
