Re: An interview with Nigel Harris (MD, Ford India) Lets ignore the '3rd position' comment - that was simply the journalist putting words into the MD's mouth.
I think that Ford has been pushing all the hot buttons lately. They're definitely headed in the right direction. As the old saying goes ' there's no problem that an excellent car can't solve'. Certainly holds true even in today's crowded market. Renault has little going for it as a company, but with the Kwid, it's hit a sixer! Had earlier done it with the Duster too. Likewise with Skoda who - despite all its woes & shoddy dealers - managed to make the Octavia the no. 2 in the segment. If you have an excellent car that is well-positioned, it will sell.
And Ford's product line-up has greatly improved in the last year. On the one hand, they've launched the superb Endeavour (well-priced too), the Figo and Aspire (both well-rounded mass market cars). On the other hand, they got rid of sales laggards (Classic, Fiesta, old Figo) so that management can focus on fresh products. From their existing line-up, the EcoSport remains a heck of a compact SUV.
They've been doing a lot of good stuff lately, including the sale of spares over the counter, more distribution centers, expanding the child part range etc.
But what Ford really needs to do is make its marketing, sales & dealer push sharper. It has the cars to sell over 100,000 a year. What's needed is laser-like focus on selling. That's where Ford comes up short. They also goofed up by launching the Figo, Aspire & Endeavour so close to each other as the company simply doesn't have the bandwidth or capacity to handle so many launches. Quote:
Originally Posted by swiftnfurious 1. The market's obsession with FE. Solidly built cars will be on the back foot
2. Brand name & Image - Ford has a reputation of expensive maintenance. It'll take time to change it.
3. Easy to drive steering |
All of these are outdated points. The Figo, Aspire etc. have already addressed these limitations.
Also, putting up a post from my annual sales analysis here as it's relevant to the discussion: Quote:
Originally Posted by GTO Ford
Ford had a fully flat year. 2014 & 2015, both, brought sales of ~77,000 cars (each).
At any given point in its Indian history, Ford has managed to sell one model only - that is, one car brings it an overwhelming majority of volumes. We hope that will change with the new launches. In 2015, 55% of its volumes came from the EcoSport. All isn't well with this talented compact SUV though. YOY numbers have fallen 17% to 42,000 sales (2014 = 51k). Except for Jan & Feb, it's not once crossed the 4,000 mark. What's more, the EcoSport's sales average for the second half of the year (excluding flood-hit December) was 3,440 units / month. The EcoSport still makes a compelling case for itself and I hope that it doesn't suffer because Ford's attention is diverted to newer launches. The EcoSport is going to need marketing support as there are more compact SUVs coming our way.
The sweet new Endeavour is an important product for Ford. Personally, I'm glad that the company killed the laggards (Fiesta, Classic) so that the management doesn't waste time on products that aren't selling anyway. Always look forward, not backward.
The new Figo & Aspire are well-priced and have a lot of attributes tuned to mass market tastes (including a light build & steering!). They offer good styling, a powerful diesel, comfortable ride quality, space, features & safety kit. Just wish Ford had spread their launches apart as they might have ended up with too much on their hands. I reiterate, Ford India hasn't demonstrated that they can sell multiple cars in high volume. Initial numbers for the Figo siblings aren't encouraging. The Aspire slid from a high of 5,176 (August) to 2,366 (November). The Figo hatchback lost 21% volume in only its second month of full production (November) to 2,790 cars. These aren't healthy signs for mass market cars. Ford must be terrified - they need to stop the fall as mass market cars never recover if the early months show weak numbers. Ford is going to have to burn the midnight oil. The engineers have done their job; now, it's up to the sales & marketing functions to push hard if they want to increase market share in 2016. Ford surely has the cars to cross the magical 100,000 mark, but.....will it? | |