Ford to increase market share by new car launches

Michael Boneham, president and MD of Ford India here on Thursday indicated that the US car maker, Ford has decided to launch a new car every 12 to 18 months in India to enhance its market share. However, he did not indicate what sort of market share the company aims to achieve in the long run. Talking to newsmen at the inauguration of Ford’s new dealership, Victoria Ford, Mr. Boneham said: "We now have a marketshare of nearly 2% and we want to grow it significantly in coming years. Launching of new cars from the Ford stable, will play a crucial role in growing our market share in India."

For 2009, Ford India aims to achieve sales of 30,000 cars compared to 29,000 cars sold in calendar 2008. "In September ‘09, we have been able to sell 3,500 cars which is a 50% increase year-on-year basis," said Nigel Wark, executive director (marketing, sales and services). By investing $500 million, company will expand production at its Chennai plant from 1 lakh to 2 lakh vehicles, apart from producing 2.5 lakh engines, both in petrol and diesel.

SUV Ford Endeavour with some added facilities is being relaunched by Ford and Boneham informed that the new Ford Figo, on which the company is depending to get into the lucrative A segment, would be available in both petrol and diesel variants also. The company exports its cars produced in India to South Africa. Ford’s foray into the Indian compact car market with Ford Figo is expected by the first quarter of calender 2010 and the vehicle would be exported to Asia Pacific and Africa along with sales in India. Last year, the company had exported nearly 4,000 cars.

SUV is the new market propeller for auto sales in India

India is always a country which has its own pecularities. While the rest of the world is going slow on gas guzzlers and the big cars including SUVs, the market for them back home is getting attrcative with every passing day.

Inorder to cash on the building demand for SUVs in India, many global and domestic auto giants have been busy rolling out newer models or variants of their existing SUVs to pamper the senses of drivers who want to have a 4x4 driving experience.

In the brginning we had SUVs from companies like Mahindra who rolled out Scorpio, Toyota had Qualis which was phased out and Tata Motors which had Safari and Sumo. But now, there are at least 15-20 models (including imported ones) sold by a huge chunk of multinational companies in the country. Furthermore, people are snapping up these vehicles pushing the companies to either stop the bookings or launch new models.

The new innings this year was kicked off by General Motors India which launched the AT version of its Captiva SUV, followed by BMW with its X6, while others have also followed suit. While companies like Toyota are not taking additional orders for its recently-launched Fortuner SUV, Ford motor Company is offering an attractive price tag for its refreshed 2009 Endeavour SUV.

Toyota Kirloskar Motor Pvt. Ltd. (TKM) has recently announced that it had received a record 5,000 bookings of the ‘Fortuner’ in just over a month. TKM is trying to ramp up monthly production figures from 500 to 600 units to meet high customer demand and is also planning to sell 2500 units of the ‘Fortuner’ during 2009 versus the earlier announced target of 2000 units.As of now, TKM dealers have been advised to take customer orders without advance payments, while committing to a tentative date of delivery. The vehicle is powered by a 3 litre Advanced Common-Rail Diesel engine and also features fulltime four-wheel drive.

Within a fortnight of Toyota driving in its Fortuner diesel SUV in India, segment leader Ford rolled out a new version of its Endeavour, pricing the automatic variant of the model competitively at Rs. 17.9 lakh (ex-showroom Delhi). It is believed that by keeping the pricing of the automatic version of the Endeavour well below the Rs. 18.45 lakh pricing of the manual version offered by the Japanese auto titan , Ford is aiming to lure away all the Toyota customers (who are not able to buy Fortuner SUV immediately) into its own showrooms.

According to an auto industry analyst, sales have gone niche and buyers are putting their weight behind the premium SUV category which range from Rs. 13 lakh and above. SUV manufacturers have thrown in newer models; each better than the last one, got the right buyers interested, and managed to return with envious sales figures. Industry observers sees the overall market size of this category at a little over 10,000 units annually, which though small holds the potential of growing fast in the long-term with the road network getting better and more and more people driving across cities.

The resurgence of SUVs is yet another reason for the automobile companies in India to cheer about..and joining the bandwagon is now Nissan India with its X-Trail. There is promise of more action in coming days.

Ford India to launch small car in India

Ford India Friday said it will launch a small car in 2011 in order to tap the growing market for compact cars in the country.

"The launch will be a game changer. It will take us into the centre of Indian market," said Ford Motor executive vice president for Asia Pacific John Parker.

The car will be priced between Rs.3-4 lakh. "It will be in the range that 70 percent Indian consumers buy," Parker told reporters on the sideline of the annual convention of the Society of Indian Automobile Manufacturers (SIAM).

Ford has invested about $500 million in India since 2008.

The company will also launch a refurbished version of its sports utility vehicle - Endeavour - next month.

"We will launch a significantly improved Ford Endeavour in a week's time. Consumers were looking for higher technology in the product and they will get the same," said Ford india president and managing director Micahel Boneham.

New Ford Ikon receives overwhelming response in India

The newly launched Ford Ikon has received a fantastic response from Indian car enthusiasts across the country. Proving its popularity in the segment, the Ikon has already registered over 2000 bookings in less than a month since its launch.

On November 5, Ford India launched its new Ikon range, offering significant improvements ranging from a new advanced DuraTorq TDCi engine with superior fuel efficiency, to stylish and fresh looks drawn from bold European design cues. Complementing this is the class leading warranty and significantly lower cost of ownership that the new Ikon boasts of.

Timothy Tucker, vice president, sales, Ford India added, ``The new Ford Ikon has received terrific reviews across the country and is testament that the company have its fingers strong on the pulse of the customers. Dealers across India are echoing of heightened consumer interest and dealerships such as Kairali Ford, Bhagat Ford, Harpreet Ford, Rajshree Ford and MPL Ford have shown exemplary efforts in registering maximum bookings. The company is confident that the Ford Ikon will continue to post excellent sales results in the coming months as well.``

Ford has introduced the advanced 1.4-litre DuraTorq TDCi engine in the new Ikon to complement the current 1.3-litre petrol engine, offering consumers the choice of two of the best power trains, tailored to suit Indian driving conditions.

The new Ford Ikon has real appeal for those looking to complement their lifestyle with an energetic, stylish, affordable mid-size sedan.

Ford India is a wholly-owned subsidiary of Ford Motor Company, a global automotive industry leader. Ford India manufactures and distributes automobiles made at its modern integrated manufacturing facility, at Maraimalai Nagar, near Chennai. With more than 2100 employees, the company`s models include Ikon, Fusion, Endeavour and Fiesta.

Ford India to market new fuel-efficient vehicles

Ford India has announced plans to market a new line of fuel-efficient vehicles.

The cars, which will be available for sale in 2010, are fueled by compressed natural gas and liquified petroleum.

Ford India currently distributes Ikon, Fusion and Fiesta cars, as well as the Endeavor sports-utility vehicle. However, the worldwide economic recession caused sales to plummet by 22.5 per cent from April-September 2008. Nevertheless, the company still managed to ship a total of 4,062 cars and SUVs during the troubled period.

"The credit crunch and the lack of confidence has affected [us] in the short-term," admitted Michael Boneham, president of Ford India. According to Boneham, the company expected 2009 to be a tough year for the industry with a single-digit growth (rate). However, the optimistic president projected that sales would increase when Ford launched its fuel-efficient small car in 2010.

Ford will undoubtedly face stiff competition from a number of companies vying to dominate the lucrative Indian automotive market. For example, Toyota is reportedly developing a new fuel-efficient vehicle expected to retail at $5,000. In addition, Tata is slated to launch its affordable $2,500 Nano sometime in the near future.

Ford sets early 2010 target to launch small car in India

Armed with a $500-mn investment outlay, Ford Motors has set early 2010 as the target to launch a small car in India, start its new engine-making unit and double the assembly line capacity, a top official said here.

The US-based giant will also unveil its refurbished Ikon by next month to expand its range of offerings in the country that includes Fusion, Endeavour and Fiesta, said Michael Boneham, managing director and president of Ford India.

"Ford now has a presence in only 30 percent of India's automobile market segments. We are entering other segments too. These are exciting times," Boneham told IANS at the company's factory at Maramalai Nagar on the outskirts of the Tamil Nadu capital.

"We are also commissioning a new engine manufacturing unit. It will serve both the domestic and global markets. It will have the flexibility to produce diesel and petrol engines. The idea is to go for higher localisation in the months to come."

Speaking about the small car project, the Ford official said it was being designed and developed specifically for India by a global team. "It will meet the needs of Indian conditions - like water wading, air-conditioning and emission standards."



While declining to divulge any further information on the project, Boneham said it will have a sub-1.2-litre engine with a length of no more than four metres to avoid higher taxes. "It will be very, very competitive in that segment."

Ford's first offering here was the "Josh machine" Ikon that rolled out in 1999 from this city, often called the Detroit of India for hosting auto companies like Hyundai, BMW, Mitsubishi, Ashok Leyland, Caterpillar, TVS, Tafe and Same.

Nissan and Daimler are among some global players that have definite plans to set up their units in this city.

Boneham said the company's integrated engine plant for 250,000 units per annum will be its first outside Europe and will make low-displacement engines for cars to be rolled out of its Indian plant for both domestic market and exports.

He said the existing $26-mn diesel engine assembly plant, with a capacity for 50,000 diesel and 10,000 petrol engines for Fiesta and Fusion, would be eventually integrated with the new plant.

The company has the capacity to assemble some 100,000 cars per year at its facility here, which will be doubled to 200,000.

Queried about the future of its tie up with the Indore-based Avtec that supplies 1.6 litre petrol engines, Boneham said: "We will continue to work with them. We will look at sourcing components from Avtec."

He also sought to dispel the perception that the cost of ownership of Ford cars was high compared with those offered by Japanese and South Korean companies, as several factors like fuel efficiency and servicing were also involved.

"As per our study, in some parts we are costlier and in some others we are cheaper. Overall, we are very competitive in this area. We are working to lower component costs further. Our diesel engine is more fuel efficient than many others," he said.

"High localisation is intended to achieve that. We are extremely quality conscious. Today, we can say we are far more satisfied and comfortable with our vendors."

Ford plans to roll out small car by 2010

WITH US automaker Ford’s Indian subsidiary announcing its intention to launch a small car in India by 2010, the Indian small car market is set to witness an explosion of small cars. Carmakers are racing to get products on the road by 2010, with global auto giants like Honda, Nissan, Daimler Chrysler, General Motors and home- grown Bajaj Auto all announcing plans to launch their small car by 2010. Tata Motors’ ultra low- cost ‘one lakh rupee car’ Nano, unveiled in January this year, has ignited competition in this sector, hitherto dominated by Maruti Suzuki.

By 2010, the demand for cars is expected to almost double to two million a year. Said Michael Boneham, managing director and president ,Ford India, “The small car segment has 75 percent share on the Indian market, and when we launch the small car, that’s when the real volumes will come in.” This shift in Ford’s strategy is touted by analysts as a global business strategy adopted by other global automakers like Nissan, Renault, Toyota and Honda. All these have acknowledged the merit and scope of producing an ultra low- cost car (ULC). Besides this, looking at factors like fuel economy and volumes, global auto companies are under pressure to target this growing segment, analysts say. Ford’s small car will most likely be sold with diesel and gasoline engine options, Boneham said, on the sidelines of a news conference, to launch an upgraded range of Fiesta sedan cars.

Ford’s new engine manufacturing facility will be set up in 2009- 10 with a capacity of 2,50,000 units per year. “The plant will fulfill the entire domestic demand and will also cater to the needs for ford in the Asia Pacific region,” said Boneham. Ford currently produces the Fiesta, Ikon and Fusion sedans, and the Endeavour SUV in India. The company had recently shut plants and cut workforce in North America amid financial losses. It has announced plans to invest $500 million in India to expand production capacity and make the new small car.

Ford is also exploring the possibility of introducing eco- friendly vehicles that run on alternative fuels or hybrid cars in the Indian market. According to the McKinsey Global Institute, consumers in the Rs 90,000 to Rs 2- lakh- a- year salary bracket will form the largest portion of India’s income pyramid in 10 years. These form the target for Tata’s Nano. Now, even global auto makers are targeting this segment. Toyota Kirloskar Motor (TKM), a joint venture between Japan’s Toyota Motor Corp. and India’s Kirloskar Group, also plans to invest Rs 1,400 crore on anew plant in Bengaluru, from where it will roll out its small car in abid to tap the largest segment of the car market in India. Said Vaishali Jajoo, auto analyst, Angel Broking, “Growth for global auto markets in developed markets is in single digits, whereas the small car market is projected to show a double digit growth in the coming five years. Besides this the (small car) market contributes over 50 per cent to the overall car sales in the country. Factors like cost efficiency are also a big push for global biggies.” The move has also set off a flurry of activity among component vendors, with most original equipment manufacturers (OEMs) gearing up their volumes for small cars to be launched by Renault- Nissan, Bajaj, Honda, General Motors and others.