Ford was first famous in India. Now, I have read the news that ford had quit the India. What are the reasons for quitting India by Ford ?
person
brightness_auto
1 Answer
American automobile brand Ford gives global cars to India and was late entered in small car segment of Indian market. Ford quits India and closed down their both manufacturing units in India. Ford will see their high end cars in India only through import route and this is the shocking news.
There are numerous factors responsible for Ford's exit from India. Experts said that Ford didn't read the minds of Indian consumers properly, as the Indians mostly prefer small cars and high millage. Ford hadn't any small spaced car in their Global portfolio. Ford saw Indian market through US prism and focused on engine power and performance. That's why Maruti Suzuki, Hyundai and Tata Motors become famous in Indian Market.
Ford didn't prepared any product plan for India and viewed it from Global level and focused on their limited older models. That is why, Ford lost their pace. Ford's market share growth was also negligible i.e. from 1.1% in FY 2000 to 2.8% in FY 2014, which is insufficient for capturing market share. Ford claims that, its operating and not operating losses over 10 years were collectively more 2.8 billion US dollars, which may also be the reason to shut down India plants.
With Ford's exit, other car companies will try to focus on their own utility vehicle manufacturing. We can say that Ford's exit will help KIA to expand in India with its popular models that are Seltos and Sonet.
There are numerous factors responsible for Ford's exit from India. Experts said that Ford didn't read the minds of Indian consumers properly, as the Indians mostly prefer small cars and high millage. Ford hadn't any small spaced car in their Global portfolio. Ford saw Indian market through US prism and focused on engine power and performance. That's why Maruti Suzuki, Hyundai and Tata Motors become famous in Indian Market.
Ford didn't prepared any product plan for India and viewed it from Global level and focused on their limited older models. That is why, Ford lost their pace. Ford's market share growth was also negligible i.e. from 1.1% in FY 2000 to 2.8% in FY 2014, which is insufficient for capturing market share. Ford claims that, its operating and not operating losses over 10 years were collectively more 2.8 billion US dollars, which may also be the reason to shut down India plants.
With Ford's exit, other car companies will try to focus on their own utility vehicle manufacturing. We can say that Ford's exit will help KIA to expand in India with its popular models that are Seltos and Sonet.