The Light Is Green: India auto industry update (Part 5): Ford in India

July 02, 2007

India auto industry update (Part 5): Ford in India

As a provider of dealer management systems to automobile dealerships in several emerging markets, we closely follow what happens in the auto industry in key regions around the world. I thought it might be interesting to share some of that information.

This series briefly discusses the promising future of the automotive industry in India, as a consumer market and manufacturing hub. Part 1 was an overview that talked about the great demand expected in India over the next five years, mainly due to the large, growing middle class, and their ultra-low vehicle per capita ratio of 7 per thousand (the U.S.'s is 450).

All major manufacturers have plans in motion, either through the installation of new plants, or via joint ventures with existing Indian automakers. We've already looked at what GM, VW, Honda are doing in India, and today we'll address...

Ford in India

Ford in India

Ford Motor established a subsidiary in India in 1995, called Ford India Limited, in which Indian manufacturer Mahindra & Mahindra owned a 50% share. Later that participation was watered down to 16%, and in 2005, all remaining shares were sold to Ford.

Ford India has a plant near Chennai that employs 4000, half blue-collar, all highly trained. Ford India sells the Ikon and Fusion cars and the Endeavour SUV, plus the recently and successfully launched mid-size Fiesta.

Ford and Mazda may be thinking of launching a small car specifically designed for the India market later in the decade, said Business Week recently. This would be similar to what all the other major manufacturers are either already doing or planning to do ASAP.

"The Indian auto market is growing rapidly, and we continue to explore all opportunities for growth," says Ford (India) Managing Director Arvind Mathew, based in Madras.

Ford India car sales grew 8.9 percent in 2005, with sales of almost 23,000 units. Their top sellers were the Fiesta and Ikon.

Ford also has ambitious ideas projects for their Volvo line, with which they are planning a joint strategy: Volvo will address high-end market, while Ford will focus on the mid-size segment, as it did with the Ikon earlier and does now with the Fiesta.

This year, Volvo will introduce the S80 sedan and XC90 SUV, and next year the C30 and C70 models. The C30 and C70 share the same platform as the Ford Focus range of cars.

Posts in this series:

Tags: India, auto industry, automotive industry, India auto industry, Ford India Limited, Ford India, Ford, Ford in India, Ford Fusion, Ford Ikon, Volvo, Volvo in India, Volvo India

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July 02, 2007 in Auto industry, Ford, India | Permalink

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