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View Poll Results: Is revision of Ford Ecosport prices so soon after launch an unfair Practice by Ford?
Yes, it is an unfair practice. 368 81.06%
No, it is not an unfair practice 86 18.94%
Voters: 454. You may not vote on this poll

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Old 15th September 2013, 00:04   #76
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The price increase may be justified but its impact on folks who had booked the car prior to the increase IS NOT.

I read some of the opinions with amusement, I don't think it's alright to take advantage of a consumer when you have a de-facto monopolistic situation going for you. In my opinion, it's called Unethical Trade Practice.

I have nothing against Ford, they brought out a great VFM product in an untapped category and more power to them. Hope they continue to develop and introduce more such products for our country. But to ask a consumer who has committed to buy a product at an advertised price point to pay more after accepting their money, is unquestionably unfair, IMO.

The question is not about whether one should cancel their booking, the question is why should the manufacturer not be made to honor their commitment (even if it was through a dealer). Yes, while there is a disclaimer text in the booking form, I think it should be incumbent upon the seller to also state the expected time of delivery and clearly adhere to that time frame. And sensitise the customer that a price hike may happen during that time period. If that doesn't exist, it's a one-sided agreement which i believe, would be viewed as such during the legal process.
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Old 15th September 2013, 04:46   #77
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

In situations like this, the dealer should commit to certain date of deliver and price, else refund the entire booking amount. I think that is fair to both parties involved. This kind of particle should be set as a standard among dealers.
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Old 15th September 2013, 20:24   #78
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Quote:
Originally Posted by karthikpra View Post
In situations like this, the dealer should commit to certain date of deliver and price, else refund the entire booking amount.
One of my in-laws canceled his Ecosport booking with Ford and booked an Amaze instead. Amaze will be delivered in next three weeks.

The reasons quoted by him to cancel the booking with Ford are: lackluster response from the dealer, no update on the expected delivery date, and more importantly the recent price hike.

Heard from him that there were many more canceling their booking on the same day when he was there. He talked to a few of them and all these are eyeing Amaze, Etios, Ertiga, and Swift Dzire instead of Ecosport. I feel Ford is missing a golden opportunity here by delaying the deliveries and increasing the price.
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Old 15th September 2013, 21:08   #79
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

I would not say its unethical. The currency has gone really southward and costs have increased. However the interesting part for me is no manufacturer would decrease the prices citing the same reason (appreciation of the currency).

I would also say that customers who paid 50k and booked in advance should not have been affected by this. Ford has missed a golden PR opportunity. And that seems to be the problem with most Companies in India. They think for the short term so much that they forget the bigger picture.

No disrespect - I love the Ford Cars on the road, to me they look like solid pieces of engineering and the right blend of style and substance but this situation could have easily been handled better.
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Old 15th September 2013, 23:48   #80
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

I personally feel Ford India has made a mess out of a winning situation on the Ecosport.

Legally, Ford India's price revision and withdrawal of some of the promised features (as in the titanium version of the ecosport) could well be above board considering certain conditions like prices prevailing at the time of delivery would be valid, the right to withdraw/modify features at any time.

However, in the eyes of a customer, such practices would definitely be looked upon as unfair and result in Ford India's announcements always being treated with suspicion. Surely, a lack of trust is something which Ford could do without at this stage.

I had pre booked the Ecosport and was eagerly looking forward to owning one. It then was a game of football with the dealer putting me on to Ford and Ford in turn putting me back to the dealer for information on delivery. On my persistence, the dealer finally got back saying that i was 6th on his list for the Ecoboost Titanium variant and that the allotment was scheduled for December 2013.The final straw was the price hike and withdrawal of a couple of features on the titanium. Completely lost interest and it will be a final trip to the dealers place this week to cancel my booking.

Looks extremely amateurish on the part of such a big name like Ford to goof up to such an extent.
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Old 16th September 2013, 03:38   #81
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I think the EcoSport price is merely getting aligned closer to the price the market is willing to pay to sustain the target sales numbers of Ford. Remember, there is no advantage to Ford to have a backlog it cannot fulfill over an extended period of time. They cannot make more than what they have capacity for and adding capacity in the auto industry is not a short term initiative that can be done in a few months. Also, they have to take into account a target export ratio, the India-made Ecosport sold in UK fetches 50% more in terms of revenue.

A six month backlog is a good position to be in. But, a 1 year backlog is negative since it creates unfavorable image in the market without any economic gain.

IMO, the vehicle is still priced about 1 lac less than the prevailing prices of adjacent competitive offerings sold in the market in terms of a feature based value proposition. The introductory prices were really set unsustainably low, to guarantee the vehicle will be successful and attract big booking numbers and market buzz. Now that this has happened, probably even beyond Ford's expectations, it is time for them to look at pure economics of demand-supply and determine the correct pricing strategy to achieve the long term sales numbers they are looking for.

Since the current prices are still about Rs. 1 Lac lower than adjacent competitive offerings in terms of feature-value proposition, I expect the recent revision will not be sufficient for Ford to achieve the target long range sales numbers and backlog, and they will have to do another price increase six months down the road.
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Old 16th September 2013, 08:15   #82
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

Quote:
Originally Posted by 84.monsoon View Post
I expect the recent revision will not be sufficient for Ford to achieve the target long range sales numbers and backlog, and they will have to do another price increase six months down the road.
In case they do this, i would be the first to cancel my booking, I seriously cannot accept one more price change before taking the delivery. I hope ford would not do that mistake.
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Old 16th September 2013, 08:36   #83
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

While the price hike is definitely unfair to those waiting for the cars, Ecosport fans in particular, please appreciate the positive take-aways as well.

1) The car received a phenomenal amount of bookings that comprised of Ecosport fans and plain value seekers. With the price hike, some value seekers have moved on to better VFM vehicles like the Amaze, so deliveries to Ecosport fans would now happen faster.

2) Earlier, even genuine bookings were overlooked by dealers in favour of people willing to pay a premium. People were willing to pay a premium, as the price after a 50K-1L premium was still VFM compared to its closest competitor, the Duster. With the hike Ford just wiped a part of the black market it helped the dealers create earlier, with the ultra-low prices.

I do expect another hike by Jan, and with that the car would meet its fair price, and there would be no black market anymore.
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Old 16th September 2013, 09:04   #84
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

Quote:
Originally Posted by ecosport View Post
While the price hike is definitely unfair to those waiting for the cars, Ecosport fans in particular, please appreciate the positive take-aways as well.
1) The car received a phenomenal amount of bookings that comprised of Ecosport fans and plain value seekers. With the price hike, some value seekers have moved on to better VFM vehicles like the Amaze, so deliveries to Ecosport fans would now happen faster.

I do expect another hike by Jan, and with that the car would meet its fair price, and there would be no black market anymore.
For a mass-market product, those value seekers are really important (probably more important than the fans), because they are the ones who bring in volume. If another price hike come through in a few months’ time, even the so-called fans will not appreciate that.

And the fair price you mentioned is a very relative term, and not a justification for continuous price revisions.
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Old 16th September 2013, 09:39   #85
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

Quote:
Originally Posted by vb-san View Post
For a mass-market product, those value seekers are really important (probably more important than the fans), because they are the ones who bring in volume. If another price hike come through in a few months’ time, even the so-called fans will not appreciate that.
Ford has enough and more bookings to sustain it for the next 1 year at least, even after the cancellations. Once the demand comes down, Ford would bring in discounts, as other companies are doing, and the value seekers would be back.
Quote:
And the fair price you mentioned is a very relative term, and not a justification for continuous price revisions.
What is a fair price can only be determined by what people are willing to pay. From the huge backlog of bookings, and the premium some dealers are commanding, I can only guess that the Ecosport is still under-priced by around 50K.

Last edited by ecosport : 16th September 2013 at 09:41.
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Old 16th September 2013, 10:36   #86
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

Quote:
Originally Posted by ecosport View Post
What is a fair price can only be determined by what people are willing to pay. From the huge backlog of bookings, and the premium some dealers are commanding, I can only guess that the Ecosport is still under-priced by around 50K.
That is exactly what happened with the Duster, isn't it? Within an year of it's launch, the prices shot up by over a lakh, and the 85PS RXL (O), that was 11.4 lakhs on road, Delhi at launch, is now 13 lakhs, and well out of reach of buyers, who earlier moved to the Duster rather than opting for sedans like the Vento highline, Verna, etc. These are the people who choose cars based on their budget and give less heed to the body type.

Coming to Ecosport being under-priced: As a customer who booked the Ecosport within 10 days of it's launch and isn't deterred by the recent price hike, I'd be very disappointed if Ford hikes the price again without clearing it's backlog.

I strongly feel that if another price hike happens, Ford SHOULD offer price protection to previous bookings and the new price be applicable to the bookings made after the price hike.
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Old 16th September 2013, 10:59   #87
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

I can understand a manufacturer raising prices. What I cannot understand is the cancellation charge. This is a very one sided and illegal clause. They will lose the case if someone moves court against it.

It is highly unethical too to raise prices so soon after launch. It is a very short sighted decision also and will not help Ford's image. Losing customer's trust is very suicidal. Whoever has taken the decision at Ford knows he will not be in charge for too long.

Incidentally Duster has just announced a price cut.
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Old 16th September 2013, 11:33   #88
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

Quote:
Originally Posted by Sudipto-S-Team View Post
Incidentally Duster has just announced a price cut.
Can you shed more light on this in the Duster thread? I am interested in knowing.
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Old 16th September 2013, 12:12   #89
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Default re: Ford EcoSport : Price revision, an unfair/sharp practice

Sansvk - I don't know where the Duster thread is. I have sent you a PM.
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Old 16th September 2013, 12:29   #90
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Quote:
Originally Posted by Sudipto-S-Team View Post
Sansvk - I don't know where the Duster thread is. I have sent you a PM.
There is so such information available over the web yet! Can you please share the details here?

Last edited by Abh1nav : 16th September 2013 at 12:53.
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