The US automaker Ford Motor is upbeat on India in the backdrop of nearly $2 billion investments spread over manufacturing units in Tamil Nadu and Gujarat and global business services centres.
It expects to pack a busy season ahead with the launch of its segment-creator sports utility vehicle Ecosport and follow this up with other models.
Undeterred by the current phase of slowdown impacting car sales, as Ford builds its new plant, it sees a line up of its global vendors also coming up with plants in India.
The company will have a total installed capacity of 4.4 lakh vehicles and 6.1 lakh engines by 2014. It expects to make India a major export hub for other markets. About 40 per cent of the engines assembled here and 25 per cent of cars made in India will head towards its global markets.
“We have invested nearly $140 million in the manufacturing facility for making Ecosport in Chennai plant and it will serve as a base for exports,” Joginder Singh, President and Managing Director of Ford India, said.
He was in Hyderabad to showcase Ecosport. Excerpts from the interaction.
How are your business plans unfolding?
We are committed to India growth story even though there may be temporary concerns of automotive market slowdown. Ford committed an investment of $500 million about eight years ago and increased this to $1 billion five years ago. Two years ago, we decided to increase this again to $2 billion.
We want to be well represented both with the product range and market presence. The focus now will be on expanding and reaching out in the Tier-I -II cities. We had 125 touch points five year ago and closed last year with 260. We will double this number. Last year, we closed with 10,000 employees and by 2014; it will become 15,000 with the addition of Sanand plant.
What are your plans for Indian market?
Globally, we unveiled the One Ford concept and Ford Kinetic design philosophy, the later is like version 2.0. The launch of Ecosport in India after its introduction in Brazil and China is based on this approach. However, India Mein Thodi Dikkath Hai (there are some difficulties). By offering right product for the right segment, we will be able to make a difference. We believe India will do well as the economy looks up and heads again towards 7-7.5 per cent growth rates.
With high localisation, we have managed to make a difference with Ford Figo and expect to repeat its success in other segments. Figo is now exported to about 38 countries.
How do you see Ecosport making a difference to your game plan in India?
It will come with three engine options and the petrol powered engine with eco-boost technology will redefine how you look at engines and their performance criteria. In fact, the small one litre engine will be as efficient as say a 1500 cc engine. Significantly, this will have 15 per cent less emission.
How about marketing initiatives?
The focus is on value creation and not merely having a visibility. Therefore, the accent is on references making a difference to potential buyers and helping them buy one. Coinciding with the third anniversary of Figo, two top designers were engaged and a signature campaign was created to launch a new edition. Likewise, we are doing it for Endeavour.
We are now showcasing Ford Ecosport here for people to experience the vehicle. Reference and experience sharing is the best way to help decide on a new vehicle. We are yet to decide on the pricing. But let me assure it will be attractively priced.
What is your reading of the diesel versus the petrol car market?
The Government has given some clarity on the road ahead in terms of their pricing. Businesses have to adjust to this reality. However, it is too early to say how the market and consumers will react to this. We have both options and can adjust to what the market requires.