In a bid to penetrate the fifth largest auto market in the world, Ford Motor Co will be using the new engineering strategy it learned from India, which lets them develop compact model through low-cost production.
Ford's Asian rivals like Maruti Suzuki India Ltd and Hyundai Motor Co, has already been using this strategy. These auto companies outsold Ford in India, where small, affordable but powerful cars are in demand.
The giant American auto company has been struggling with its sales in India with only 75,000 cars sold in the last fiscal year while Maruti sold some 1.2 million cars.
Ford launched its Figo Aspire, which is the first India specific, affordable small car. The auto company aims to penetrate India with this new auto line. The car's starting price is $7,557 or 489,990 rupees. This price is cheaper compared to Maruti and Honda's counterparts $7,267 and Toyota's $7,203. According to executives, the powerful and fuel-efficient engine of the new Figo Aspire will also be used for the other vehicles that will be exported to Southeast Asia and Africa.
According to Ford India president and managing director Nigel Harris, 2015 will be a real turning point for their company.
Ford's B-car Program Asia Pacific Head John Lonsdale, " we are being challenged to find engineering solutions at lower costs than we have traditionally been able to do."
Global sales of B-cars are seen to rise radically by 2020 and Ford will use it as key to its growth in markets like India and more. India is also expected to become the third largest auto market by 2020.
Ford may have changed its strategy, but its Asian rivals have been at it for a long time. Experts believe that Ford may be too late in implementing the new strategy.
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