Ford expects higher success level through its alliance with Mahindra; aims more localisation to sell products at competitive pricing
Ford is expecting more success in Indian market in near future, thanks to its alliance with Mahindra. The American auto major is aiming to increase the localisation of its products in order to sell the cars at competitive pricing. Also it denies any chance of quitting the domestic market like General Motors.
As Ford says, it sees India as one of the most important markets for the company and wants to build a profitable business in the fifth largest auto market in the world that is expected to become the third largest by 2020. Its tie up with Mahindra is only a step towards that direction. In recent past, Ford launched all new platforms, products and powertrains in India and in coming years too the company will continue with that strategy.
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In order to become stronger here, Ford aims to roll out new products at aggressive pricing. Also, it plans to enhance the retail network and improve the after sales service as well. As the brand claims, it has experienced 30% revenue hike in last three years and the brand is gearing up to increase that further.
Not only increases product localisation, but Ford is also aiming to enhance its research and development activity in India in order to boost its market share here. It has already invested more than $2 billion in the country and will pump in a fresh investment of $195 million in a new facility in Chennai that will work for product development and business services purposes.
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Ford says believes, its partnership with Mahindra will help the brand with reduced material and structural costs that will ultimately lower the production cost resulting in lowered car price as well. This way, Ford aims to increase the profitability by cutting costs at various stages of production process. Currently, Ford is gearing up to launch the refreshed EcoSport facelift in the country soon and the Endeavour facelift is also on card.
Source: ET Auto