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View Poll Results: Will Ford stick around in India?
Yes 255 53.01%
No 226 46.99%
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Old 3rd May 2021, 22:47   #76
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Default Re: Ford India's future plans | Will it stick around in India?

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Originally Posted by GTO View Post
. Ford's American CEO would be fed up of Ford India. In the 1-hour / month that he would spend looking at Ford India's reports, he would only see a poor ROI,
I see a lot of arguments about what Ford needs in terms of products etc.

However, I think this one sums up perfectly:

Any CEO that will spend only 1 hour a month on India is going to be fed up very very quickly. No matter how smart you are, you will not get on top of India in one hour per month. It is impossible. India is just to big, to diverse, to complex and very different from other markets.

So it’s the responsibility of whoever is in charge locally to ensure he/she gets more face time with the CEO and other stakeholders. But it does take two to tango obviously.

When I was still in India I was part of various industrial “round table” groups. Usually some senior executive expats from various industries getting together. Basically to exchange information, insights etc. Very often I noticed that several of them were just fed up to the teeth with India. These were hardcore Executives that have spend their whole life living and working abroad. And still, they could not come to terms with India.

Having an Indian local executive team does not solve it, as they will have trouble with their western colleagues.

What it boils down to is India just becoming to much of a hassle to be doing business in for the people that matter. When you start looking at only the financial short term perspective, it might be easier to just pull out.

When people at HQ think a market is becoming a hassle, you in that local market find yourself in deep and troubled water. I think we can not underestimate how different American Business culture is compared to Indian.

There is another elephant in room: Corruption. American, and to a similar extend European Multinationals who are listed on any of the US stock markets are becoming very cautious with countries with high spread corruption.

That is bad, because you would like to think that they detest corruption and won’t except it because of their own moral values. Maybe some do, but certainly some recent huge fines to several Multinationals have given pause to think. We are talking billion of dollars here, very negative PR for years to come. And very expensive, multiyear oversight from various US regulators/authorities before they trust you again.

See FCPA: https://www.investopedia.com/terms/f...ctices-act.asp

As always with anything significant. It is not about the right model at the right time. It is all about a fundamental mindset and perspective on what it takes to ultimately become successful in a (potentially) huge very specific market like India.

An hour per month worth of attention ain't gonna hack it dude!

With an hour per month CEO time, Ford India is simply doomed. Period!

I am not passing judgement whether it is good or bad business decision on Ford’s behalf.

Jeroen
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Old 3rd May 2021, 23:00   #77
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Default Re: Ford India's future plans | Will it stick around in India?

I misread the title as "will ford leave India" and voted yes.
After GM and Harley Davidson, I strongly feel its just a matter of time Ford also pack their bags and leave.
We cannot blame them as every company is re-evaluating their options and thinking hard how to survive the tough time we are in. Getting rid of an insignificant operations like Ford-India, that has no future either is a simple decision to make.
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Old 4th May 2021, 00:09   #78
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Default Re: Ford India's future plans | Will it stick around in India?

The new Magnite launch should give Ford a lot of confidence on how to come back strongly. Infact they do not even have to try as hard as Nissan to launch a proper India specific product and then work hard to be accepted by the masses. They already have the customer base who would lap up a true blue Ford like myself and by ensuring it has all the bells and whistles that an average Indian car buyer is looking for at the right price, attract the general car buying public too.

But the question is do they want to and would they do a Nissan or is it just too late.

Last edited by SPARKled : 4th May 2021 at 00:10.
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Old 4th May 2021, 01:16   #79
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Default Re: Ford India's future plans | Will it stick around in India?

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Originally Posted by Slowjet View Post
Many say that Maruti is tin cans. I would say if they comply with the government norms why blame them. There are options available if the product is not as per the liking.
A product positioning is based on the market segment you want to target. Why blame Maruti for that?

Very well said. For all those bashing Maruti as tin can manufacturers, do keep in mind the Brezza is a 4star rated car as opposed to the korean offerings. The 5star rated SCross 1.6 was an arguably superior car to the Hyundai Creta and yet the market rejected it (even after the price correction). For all the talk of safety and ‘doors closing with a thud’ on forums like these, the value proposition that Maruti provides to an average Indian buyer is still unmatched. Where others have been able to match it, Maruti has faltered. Honestly, in the segment we are talking about, the Americans and Europeans (though VAG and Renault/Nissan seem to have finally woken up from their slumber) never really treated the Indian market with the respect it deserves. The Koreans did and it shows in their sales.
Ford screwed up the Figo, never capitalised on the success of ecosport, underpowered the endeavour and yet Maruti is to blame for their probable exit!
India is a unique market...international learnings and sensibilities rarely apply here. Any company that wants to make it work here, needs to get their skin in the game and commit to the quirks of the market. If you can’t do it, you’re better off exiting.

Disclaimer: have never owned a Ford but have driven the first gen Figo and the diesel ecosport for ~8k kms over a couple of years. Currently own a Maruti SCross. Have owned a VW before.

Last edited by Sheel : 4th May 2021 at 11:38. Reason: Broken quote tag fixed.
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Old 4th May 2021, 01:29   #80
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Default Re: Ford India's future plans | Will it stick around in India?

The exit from Brazil has killed any hope of them remaining in India.

Brazil had Ecosport, we had ecosport, they had Ford Figo (renamed Ka), we had Figo, and the cost of new product and platform development was shared between two reasonably big countries.
With the exit of Brazil, developing new products for our country alone is just impractical, financially speaking.
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Old 4th May 2021, 01:56   #81
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Default Re: Ford India's future plans | Will it stick around in India?

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Originally Posted by Turbanator View Post
When Ford launched the Endeavour in 2016, they made a mistake by targeting the Fortuner and kept it at 30 lakh or so. They should have priced it at least 40 lakh at that time and I am more than sure, it still would have sold.

On the matter of Ford, in my opinion, from whatever info we have in the public domain, they should continue exports and keep high margin products loaded to western standards and just get rid of products that bring volumes but drain resources.
I cannot agree more to both the points.

They should've sold the Endeavour as something aspirational and it would've still sold same (or maybe even better) numbers.

Indians have enough buying power and the more things get aspirational for them the better it is for luxury segment.

Even if they make it a typical sales front office they should take CBU orders and just reap in whatever margins they can.
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Old 4th May 2021, 11:23   #82
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Default Re: Ford India's future plans | Will it stick around in India?

Their relationship with Mahindra cost them dear.. the Mahindra - ford alliance went too far ahead and both parties decided to call it a day . this was after ford started to work on a car with a Mahindra engine.
After the breakup , ford as of this moment, is starting fresh.. they cannot abandon india like GM did... they have burnt their hand with a JV with Mahindra.. they have no other option , but to pump in some money and start fresh.. now, how much is ford willing to pump in is a big question.
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Old 4th May 2021, 11:47   #83
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Default Re: Ford India's future plans | Will it stick around in India?

Quote:
Originally Posted by turbo View Post
The exit from Brazil has killed any hope of them remaining in India.

Brazil had Ecosport, we had ecosport, they had Ford Figo (renamed Ka), we had Figo, and the cost of new product and platform development was shared between two reasonably big countries.
With the exit of Brazil, developing new products for our country alone is just impractical, financially speaking.
On the contrary this is an opportunity for Ford India. Ford has only exit manufacturing and development in Brazil but they will still be selling cars there via the import route.

Ford need their B cars to be competitive in emerging markets and this is where India fits in with huge investments already made into an R&D setup in Chennai, enough production capacity and a proven export capability.
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Old 4th May 2021, 12:23   #84
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Default Re: Ford India's future plans | Will it stick around in India?

Ford's main focus in other countries are pickups and Mustangs. Yes, they have cars like Focus and Fiesta which sell in good numbers too, but unfortunately for Ford, their Focus (pun intended) in the Indian market was short lived.
I feel somehow they never got their timing right with car launches, barring EcoSport.
Figo today would have been an awesome car to sell. Freestyle a couple of years earlier would have done well too. It's just a matter of time of when to launch the right vehicle and companies such as Kia and MG did that well.
All in all, I believe Ford will exit India. But it would be wishful thinking if Ford & GM agree to launch their cars via a JV here. I would wish them well on that Endeavor (punned again).
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Old 4th May 2021, 12:39   #85
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Default Re: Ford India's future plans | Will it stick around in India?

Currently in Indian Market their bread and butter is Ford Ecosport.
Ford Endeavour and Freestyle is somehow generating the revenues but overall monthly sales of 5500 ~ 7000 is not enough to run the show for a car company which operates in mass volume segments (Hatchbacks, Compact Sedans, compact SUVs etc).
I hope they come up with a revival plan (like Nissan did). Closing operations will make lot of people jobless.

Last edited by Sheel : 4th May 2021 at 13:20. Reason: Formatting.
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Old 4th May 2021, 18:31   #86
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Default Re: Ford India's future plans | Will it stick around in India?

Not an expert, but this is what I think:

1) Rules and regulations are arbitrary. The sub-four meter rule, the cubic capacity rule, and the taxation structure mean every Car manufacturer must have 'made-for-India' products. The Golf and the Corolla (or even i30) can't just be sold here. The rules make them either too expensive (no suitable price point) or too stripped down with underpowered engines (dead on arrival).

2) The market is still developing. They can't sell estates, can't sell trucks, and nowadays can't sell sedans. The only thing that gives an opening for most brands is a cross-over shaped like an SUV.

3) The fuel prices are extremely high compared to the income level of people. So, something that can be a great success in other markets wouldn't sell in India just because 'Kitna deti hai'.

So, it's tough-going for any new player in the market. Most of the things that work elsewhere don't work here for one reason or the other. The best way is to simply spin off India's business as a separate entity, do technology transfers and charge royalty (what Suzuki does). Otherwise, it's just too much of the Capex and the balance sheet keeps bleeding. Ultimately, the brand gives in to the pressure from the shareholders.

The only consistently successful players in the market MSIL does this. Mahindra and Tata are homegrown and Koreans are the exception.

From time to time, we see half-hearted attempts from Ford, VAG, Renault-Nissan, Chevrolet, and Stellantis when they bring an Ecosport or a Duster (or a Magnite). But without the full commitment, they all are doomed in the long term.
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Old 4th May 2021, 20:08   #87
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Default Re: Ford India's future plans | Will it stick around in India?

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Under The Plan, the company will work with urgency to turn around its automotive operations by improving quality, reducing costs and accelerating the restructuring of underperforming businesses.
I don't think Ford will quit India. They have invested already into their Global Technology and Business Centre which caters worldwide. India is one of the major export hub. They have invested into Zoomcar to realize their plan of innovation in the mobility area.
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Old 4th May 2021, 21:34   #88
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Default Re: Ford India's future plans | Will it stick around in India?

This doesn't sound good at all. I was hoping to test drive the Ford Ecosport post lockdown before I decide. I don't want to get stuck with a car that doesn't have service support.
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Old 6th May 2021, 13:28   #89
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Default Re: Ford India's future plans | Will it stick around in India?

In my opinion, Ford must consider the below 2 key points:
1. Try to maximise localization: this is for across the line all the models
2. Try to make uniform reusable platforms so that the same part can be used in different models
3. Make cars for both domestic market as well as for export

This way, the production cost can be minimized and the volume can be maintained. Due to current covid situation, the markets will vary across the world, so more localize your production and more globalize your sale to achieve a balance.

Hope Ford India does well in future and makes India as an important manufacturing hub for global level car production.
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Old 6th May 2021, 15:39   #90
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Default Re: Ford India's future plans | Will it stick around in India?

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Originally Posted by d2krish View Post
In my opinion, Ford must consider the below 2 key points:
1. Try to maximise localization: this is for across the line all the models
2. Try to make uniform reusable platforms so that the same part can be used in different models
3. Make cars for both domestic market as well as for export

This way, the production cost can be minimized and the volume can be maintained. Due to current covid situation, the markets will vary across the world, so more localize your production and more globalize your sale to achieve a balance.

Hope Ford India does well in future and makes India as an important manufacturing hub for global level car production.
Ford India has pretty much done everything you listed from the time they developed the Figo.

It would have made sense if you had told this in 2005.
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