Ford to Sell 1st Small Car in India, Taking on Suzuki
Sept. 23 (Bloomberg) -- Ford Motor Co., the only major U.S.automaker to avoid bankruptcy, will sell its first small car inIndia next year, aiming to lure buyers in a country wherehatchbacks account for about three out of every four cars sold.
Ford Chief Executive Officer Alan Mulally unveiled the Figocompact car in New Delhi today. A factory in Chennai, southernIndia will make the car for both domestic and overseas markets,the company said in a statement.
Toyota Motor Corp. and Volkswagen AG also plan to sellsmall cars in India, where Suzuki Motor Corp. controls more thanhalf the market with its seven compacts. Rising disposableincomes in the world’s second-fastest growing major economy maymore than double car sales to 3 million annually by 2015, incontrast to declining sales in the U.S., Japan and Europe.
“Anybody who wants volumes and better visibility for theirbrands will cater to the small-car market in India,” saidSurjit Singh Arora, an analyst at local brokerage PrabhudasLilladher Pvt. in Mumbai. “No manufacturer can afford to missthis segment.”
India’s April-August car sales rose 13 percent from a yearearlier to 559,656, helped by the introduction of Tata MotorsLtd.’s $2,500 Nano, the world’s cheapest car. Ford’s sales fell2.5 percent in the period to 10,128, according to the Society ofIndian Automobile Manufacturers.
“Sweet Spot”
Suzuki had 53 percent of the market, followed by HyundaiMotor Co. with 21 percent and Tata with 12 percent. Ford isseventh among the 15 manufacturers in the country, according toSociety’s data.
“We are entering the sweet spot of the Indian market,”Mulally told reporters. The Figo “is going to be a globalplatform, one of the key platforms for Ford.”
About 60 percent of all vehicles sold worldwide in the next20 years are going to be small-sized vehicles, Mulally said. Theautomaker has “no immediate plans” to compete with Tata’sNano, Mulally said.
Ford is positioning its Chennai factory as a “regionalcenter of excellence for small-car engineering and production,”the company said in a statement. The automaker also plans toexport diesel and petrol engines to Asia Pacific and Africa fromIndia.
Ford said last year it will spend $500 million in India asit seeks growth in emerging markets to compensate for a slump insales at home. The company has expanded capacity at its factoryto 200,000 vehicles a year. It now makes Ikon and Fiesta sedans,Fusion hatchbacks and the Endeavour sport-utility vehicles.
The automaker has spent 60 percent of its plannedinvestment for India, Mulally said.
To contact the reporter on this story:Vipin Nair in Mumbai at vnair12@bloomberg.net
Last Updated: September 23, 2009 05:47 EDTSource: Bloomberg
« Back to Business News
Related News
-
Ford to Sell First Small Car in India, Taking on Suzuki, Tata Sep 23, 2009 @ 03:19 AM
Sept. 23 (Bloomberg) -- Ford Motor Co., the only major U.S.automaker to avoid bankruptcy, will sell its first small car inIndia next year, aiming to lure buyers in a country wherehatchbacks account for about three out of every four cars sold.
-
Ford to make low cost compact car in India Sep 23, 2009 @ 03:19 AM
NEW DELHI — Ford Motor Co. unveiled a made-in-India compact car and flagged expanded production in China as it seeks to boost sales in Asia, a region the U.S. automaker has hardly dented but is counting on to drive growth.
-
Ford Hopes New Figo Will Help It Win Asian Buyers Sep 23, 2009 @ 03:19 AM
NEW DELHI — Ford Motor is increasing its focus on the fast-growing car markets of the Asia-Pacific region, executives said Wednesday as they rolled out a new small car in India.
-
Volkswagen Will Pay $2.5 Billion for 19.9% Stake in Japan's Suzuki Motor Sep 23, 2009 @ 03:19 AM
Dec. 9 (Bloomberg) -- Volkswagen AG, Europe’s largestcarmaker, agreed to buy 19.9 percent of Suzuki Motor Corp. for222.5 billion yen ($2.5 billion) to boost its presence in India.
-
Ford to build new assembly plant in China Sep 23, 2009 @ 03:19 AM
SHANGHAI — Ford Motor Co. said Friday it plans to spend $490 million on building a third assembly plant in China, ramping up production to meet surging demand in this fast-growing market as the U.S. automaker expands in Asia.
