[Doge]

This is great news! Can't wait for the new Ecosporto.
Really though, good bye Ford.

[AMG Power]

Statement by Anurag Mehrotra, President & MD, Ford India:

"While we do not comment on speculation, Ford has no intention to leave India."

is a classic example of how to make contradicting / dichotomous statements such as - I won't tell you the time but it's 9:03 am now.

The first part of the above sentence - "We do not comment on speculation" contradicts the second part of the same sentence by actually commenting on speculation that Ford is planning to leave India - "Ford has no intention to leave India."

[Nav-i-gator]

I had been a Ford fan (US car fans in a way - they have a different character), buying an endeavor is still a dream. However, once bitten (I own a chevy), I'm not going to bet on them now.

Looks like only Hyundai and Toyota would be the choices for car buyers looking for reliable and safe cars (apart from home-grown biggies Tata & Mahindra, who would definitely be going to get bigger and bigger).

[ruzbehxyz]

Whatever Ford is doing, its their management decision over a period of time, which we cannot challenge. We can only comment which we are doing.

For any major change or problem, there is always a root cause. One of the root cause is the Indian mentality of Maruti. No wonder Maruti has 51% share of the Indian market. We choose cars basis average no problem how unsafe they are. I feel a strong and robust Ecosport is far better and superior to a Baleno or a Brezza but unfortunately we think otherwise. Safety is last. Even if we compare Indian cars, Tata cars are far robust than Maruti. Next comes the service network which we also blame. If sales increase, service will also increase.

With the advent of fast highways and expressways, it's high time Indian people are educated against car built quality, importance of seatbelts for all passengers and safe driving techniques.

I hope for the best for Ford.

[COMMUTER]

Had I known that only Maruti and Hyundai were the options for Indians, I would have opted for Tempo Traveller and a Motorcycle instead of buying a Ford and an VW! Though some like me are going to feel some heat over this trend of "better-car" players exiting the market for a few years, the car industry as a whole will sink in a few decades.

Because cars are no more considered as status symptoms and are being slowly embraced as utility tools. If the Maruti or Hyundai people get the Monopoly they will price them out of the threshold of the cars being an utility. We will see people opting for simpler modes of transport again with a select few opting for imports instead of marutis.

That's being set back by thirty years because of failing to see through poor choices.

[deetjohn]

We have a 2015 Fiesta Titanium at home. So, how do I take this news?

Sad? You bet! Surprised? Not really!

1) Ford has moved on from the One Ford strategy where the number of platforms were reduced and parts were globally sourced. That strategy gave us global cars like the Fiesta and took EcoSport to the western market in return. So, how did that play out? Well, it helped Ford to find its feet after the subprime recession. And Ford did that on their own without filing bankruptcy like GM or Chrysler and running to the US govt. So, the strategy did work on a global scale!

But it didn't work out for certain models quite the same in select markets. The Fiesta flopped in India and the Western market couldn't care less about the EcoSport. In essence, the One Ford strategy works only for markets where the buying patterns are similar.


2) And that brings us to the Indian car market! Like it or not, it is extremely skewed and restrictive! The tax rates are very very high, the regulations are narrow-minded (small car rule anyone?) and the customer base projects herd mentality. The car buying behavior is largely emotional and built on perceptions, rather than being logical or rational. We are good at finding reasons to fit the narrative!

And this means, while some popular manufacturers or models can literally get away with murder, the market is extremely difficult for manufacturers who doesn't have the scale for economy or a global product line which isn't aligned to cars sold here in numbers.


3) So, the only way to make money in the Indian market is to go with cars bespoke for the market. Most times, what gets sold here cannot be sold elsewhere. Except for some niche offerings - and there is no volume in that. And it also needs considerable resources and bandwidth. And it not easy for a global manufacturer to do that indefinitely for a market which doesn't guarantee volume or money! Rough calculations suggest that, out of the 9 lakhs a customer pays for a Swift, MSIL will be lucky to get even 4 lakhs after taxes and other ancillary charges. And, that presents a big problem for the manufacturers who haven't gathered any significant volume over here.


4) The big carrot for Indian market was exports. The lost cost of manufacturing + a exploding domestic market attracted several global players in the last 2 or 3 decades. But has it really lived up to the huge potential? I feel the narrow minded rules and stupid regulations have killed it. We should have had crash regulations 10 or 15 years back! The very strong domestic car lobby has seen to it that the market play to different tunes compared to the developed markets.

And what has that shortsightedness cost us? Even different parts bin for the cars made for the domestic market hasn't helped. Developed markets wouldn't touch the cars made in India with a barge pole! And different parts bin only works when the domestic + exports volume makes sense! It looks like the domestic market is also losing its steam now - saw the numbers from March 2019? That is no coincidence. The cars in the domestic market for the money it commands doesn't present any value at all. That bubble is leaking! And leaking badly!


5) The car market world over is changing rapidly. For a domain which stood still without major disruptions in many many decades, the next few years will present a sea-change! I was in San Francisco back in Feb and March. The number of electric cars on road is absolutely unbelievable. And that was when the 35k Model 3 wasn't available as it is now. Even if we consider urban California to be at the cutting edge of technology, products and infrastructure; the rest of the world will surely get there in few years depending on the competence of the government, the circumstances or the will of the people.


With that in mind, what should a global player like Ford do? Continue to bleed money and effort in a market which doesn't align in any which way to the future plans? Or pull out from the weaker markets and concentrate on the ones which delivers now and will drive the future?

Keeping all this in mind, I respect the decision by Ford. At least, they tried and have not left the customers in lurch like GM. I will most certainly miss the company and its true blue cars. I am glad we made the choice to get the Fiesta home when we did.

And as an enthusiast who adore cars, I fear for our market. If we don't mend our ways and look to the future, we will be slipping into a market with very limited number of players. And that is not good! We should know this better than any other coming from days of an Ambassador or a Fiat. Just need to replace those models with manufacturers to get that analogy! Maybe, its already too late!

Sorry for the rather long tirade!

[COMMUTER]

Had our government implemented crash test norms, almost all of the top sellers could have got wiped out leaving a select few and would have proved advantageous for the likes of Tata, VW and Ford. But what's a few lakh fatalities before few suitcases.

[headbanger]

Originally Posted by Nav-i-gator

Looks like only Hyundai and Toyota would be the choices for car buyers looking for reliable and safe cars (apart from home-grown biggies Tata & Mahindra, who would definitely be going to get bigger and bigger).

I echo the sentiment. On the fence for an automatic for sometime and with this news, feeling jittery with keeping Ford in shortlist. The sad part is that Ford actually falls right in middle for those people who want to move away from average built marutis but shy away from Volkswagens due to perceived higher maintenance costs. Had it not been for Ford not giving a titanium plus freestyle automatic or even an aspire, I would have had one in garage by now. But with this development, I will most likely skip fords and wait for better offerings from the others.

[Ramsagar]

I'm glad when I see a new automobile player setting up operations in India. And I feel sorry when someone exits. We do not want a "monopoly" of M.SUZUKI, HYUNDAI, M&M & TOYOTA.

Eg: Ford Ecosport is the ONLY sub 4M car with Sunroof. I never expected they would bring the Mustang!

More competition there is, better it is for the customer.

[neoonwheels]

Originally Posted by Ramsagar

I'm glad when I perceive a new Automobile player is getting into India : KIA, MG.
And I feel sorry, when someone egresses: FIAT, GM & now FORD.
Thus leaving to monopoly of M.SUZUKI, HYUNDAI, M&M & TOYOTA.

Eg: Ford Ecosport is the ONLY sub 4M car with Sunroof. Does any other car in this segment has?

The more the competition, customer become the KING.

You get one in EcoSport's category -> Mahindra XUV 3OO

[Ramsagar]

Originally Posted by neoonwheels

You get one in EcoSport's category -> Mahindra XUV 3OO

This is called competition my friend. Similar features would trickle down to many other cars in this or higher segments.

[DrAakash]

Originally Posted by Ramsagar

Eg: Ford Ecosport is the ONLY sub 4M car with Sunroof. Does any other car in this segment has?

Honda Wr-v has had a sunroof right from the launch day. It's cheaper than the corresponding sunroof equipped EcoSport as well.

Having bought a race red EcoSport in Feb 2018, this news makes me feel worried. Our first car was the Daewoo Matiz. Daewoo packed their bags barely 2 years into the ownership of our new car. My dad only knows how he managed to drive it for 10 more years, with the non availability of spares and service in our tier-3 town.
Runs in the family i guess.

[Who_are_you]

I own a second Gen Ford Figo TDCi. Hearing this news makes me upset.

Ford was going on right track, with introduction of baby parts and low cost of maintenance. I remember waiting period of EcoSport was 1 year long.

I generally keep my vehicles for long time and will continue to do so with Figo till spares and service is not a big issue.

[lurker]

Ford will be back with EV's, until then it does not want to accumulate any losses.

[driven646]

Sad to see yet another Global Auto major more or less exit India.

India is a brutal market and value trumps all

I'm personally waiting to see how the Chinese MG will do here, i predict an eventual serious challenge to Maruti as the Chinese work on zero or no margins, giving good products to capture markets - their sole aim at the moment.

Just look at how they've grown in the Mobile handset sectors or the TV segment.

I remain a fan of the Germans though and have 2 premium VW vehicles with fingers crossed that they too don't shut shop and leave.