Ford to wrap up India operations

Jude300 · 5th September 2021, 13:39

It's disheartening to see Ford being in such a quandary despite having an early check-in to the Indian market. As a two time EcoSport owner, I can confidently say that Ford did a great job to become more India focused and delivered some great products. They swapped the left hand drive aligned switches to right hand drive switches and also worked on cheaper spare parts, competitive service pricing, providing parts of accessories like only the mirror of the OVRM not replacing the entire unit of the mirror is broken etc. In fact the maintenance of my EcoSport was less expensive than my previous car, Estilo.

However, their deviation from their DNA in products like the second gen Figo were not pardoned by the true Ford fans. To add to it, the narrower rear seat compared to the competition (Swift, Amaze etc) was a deal breaker for many Indians. Their cars were strictly 4 seater which accommodated the 5th occupant with a squeeze. Indians don't appreciate that. Cars like Renault Triber sell well because they offer to carry more people for the same price. You might laugh at it but that's a key criteria for people living outside the cities.
They have always been a single product company i.e. only one successful product at a time in their portfolio and never could provide alternatives to a walk in customer.

Lastly, they couldn't train their sales force to sell like Maruti. Walk in to a Maruti showroom and they will sell you the car as if you were their only customer even if it was the cheapest one. Ford got greedy with their successful products (arrogance and pricing) and least interested to sell the sales duds.

I personally wish that they stay.

vredesbyrd · 6th September 2021, 08:52

Does that mean used Endeavours will become affordable?
Surely would get my hands on one if the continue service and repairs like Chevrolet did.

dsuman · 6th September 2021, 08:55

I am on the lookout for a compact sedan and test drove Ford Aspire as well. Really loved the Drivability. Pity that an excellent package is marred by lackluster support from its maker.

I cannot confirm authenticity of this information

I was test driving the Tigor and in a bid to negotiate by pitting 2 cars against each other I spoke about Aspire. The Tata guys told me that Ford is expected to enter into a partnership like that of Fiat-Tata. So I will have to bring my Aspire to them for Service.

Dont know if they were just trying to persuade me from buying Aspire or it is a fact. I have built a good rapport with them during my Nexon Purchase.

cooldude1988765 · 6th September 2021, 10:08

Quote:

Originally Posted by matizcrazy

Ford did make India specific models like the Ikon, the Figo 1st Gen, and the Fiesta, possibly other models too. And they managed decent success with each of them. Even the Fusion, which was well ahead of the times, for India, sold in reasonable numbers.

I highly doubt any of those were India specific, they might have cut costs for India (I am not so sure about this as the cars seem quite well built) but they certainly weren't developed for India.
All of those cars were developed for the European market where they were quite popular.

Stribog · 6th September 2021, 10:53

Yet another global MNC which tried to offer global cookie cutter models (after an initial spate of tuned to Indian taste models which were a massive success) and failed.

India is a market of 1.3 Bn and it has its own unique signatures (which every major or minor market has), the dictum to OEM's or indeed any MNC is, don't go with a standard meta level "Asia" or worse "global" product offering.

Take a look at the KFC vs McD story. McD is a powerhouse in fastfood in India (organised sector), with 300+ outlets currently open and the 170 it shut down in the North and East after a legal fall out with its franchise operator. With revenues of 2,000 cr and turning profit since 1st Quarter 2020 (Covid excepting), it is expanding aggressively and been an aspirational brand for middle class Indians since launch. From offering veg only branches in Gujarat, to spicy veg burgers, chicken offerings all tailormade to suit the Indian palette.

Now KFC otoh was the first fast food major to start in India, had a huge load of controversy about its menu offerings, offered a menu similar to the one it offered globally, shuttered its 2 branches in 96 and only re-entered in 99.

Since then however KFC has understood and replicated the McD playbook with a whole host of India specific offerings and also seen exponential growth since.

Likewise, the likes of VAG, Ford, GM all believed in pushing THEIR vision for the market and have failed or in various states of failure. Contrast this with SAIC or Kia and even our homegrown TaMo and MaMo who have brilliantly adapted and continue to evolve (the absolute shocker of the XUV700 being the most recent) to offer compelling value to the customer.

THIS is the only reason and anything else like "complicated tax structure" or "no enthusiasts" etc are just lame excuses by said OEM's.

Perform or perish is how capitalism operates and well, since the mid 90's at least our auto market has had a level playing field.

Jhinchak · 6th September 2021, 11:26

Adding to existing problems, ford has started to recall BS6 variant diesel vehicles.

https://www.news18.com/news/auto/for...s-4165073.html

hserus · 6th September 2021, 13:16

Quote:

Originally Posted by Jhinchak

Adding to existing problems, ford has started to recall BS6 variant diesel vehicles.

https://www.news18.com/news/auto/for...s-4165073.html

Funny. So has Maruti. https://timesofindia.indiatimes.com/...w/85914155.cms

Pam81 · 6th September 2021, 13:19

American business model has always been a hurdle in India. As many pointed out here, they are pretty good in strategizing but never have patience to see it through. All the financial returns and statistics were too strong of a expectation before they could garner a decent & consistent volume. EcoSport indeed was on it's way to become one of the trusted vehicle that balances signature Ford character in handling while offering practicality. It's a pity that they could not market it very well and got greedy before it could really reach in scale. They count only # of years to assess returns on their investments but not what they did to sustain & grow it among customers.

Sales people do not want to talk anything other than saying, Ford is a well recognized brand in America. The verdict is clear in this case, you can't go on treating India like, always foreign loving customers. If you are too good in America, then you should go back to America because clearly you are not willing to be good in India. Things have changed drastically. The premium image of any OEM in their home country is not going to be same in India. Not anymore!!

dnabhi25 · 6th September 2021, 13:34

Even I fear the worst here! I was eagerly waiting for the Figo to launch in automatic variant with the BS6 compliant engine, finally took a test drive last month and quite liked the handling and drive! When I went to book it, I sensed some uncertainty with the sales folks regarding delivery citing semiconductor chip shortage and also unsatisfactory answers when I asked them about the future of Ford in India. Backed out from booking the automatic Figo at the 11th hour!

I am back to square one and can't decide which car to buy as my first vehicle. Should I increase my budget and go for the S-Cross as that's the only car which I like from the Maruti stable or even the new i20 N looks fab to me! Totally confused now

aaggoswami · 6th September 2021, 14:00

Concentrated efforts with focus, this is what they missed. I remember reading in ACI or Overdrive that Ford collected 40 excel sheet worth of data while developing Ford Fiesta for India, the one with tag "Go Fida" with Abhishek Bacchan. There was a joke that any car endorsed by Abhishek Bacchan would usually not work, example was Versa. That Ford Fiesta went on to become a success, and it deserved that success. Note that this success came after Ikon, a car with tag of fuel guzzler. So in my view its not that image cannot be changed with right product. But what Ford missed is taking off from where Fiesta left. Their study wasn't as deep, they tried to offer car at price defying value quotient people got accustomed to via Figo and Fiesta. Lost focus and gone. Throwing money wont always get success, it has to directed in correct path. Endeavour is another example. Ford rejigged the variants so many times that a potential buyer walking in via word of mouth feedback would be confused. That customer would sprint towards Toyota and get multiple drivertrain and fewer variants coupled with a nice showroom experience. Sale deal sealed for Toyota.

New Figo and Aspire lag behind rivals in all domains, have to hand it to rivals on modern they feel against Figo/Aspire. Look at Ecosport, it still is competitive despite arrival of many rivals. But in mass market they took a step back. With Freestyle they tried to make a comeback, but its a unique proposition. Ford is actually a nice case study for management books. How cars like Figo, Fiesta Ford made success and eventually those nameplates couldn't rake in numbers. MG just walked in with a product which wasnt segment leading and costing over a million bucks but still is going places. Kia thanks to Hyundai got in and now it needs no introduction.

Its not that Ford didnt try, but it was slow. They took feedback from market for spare parts and sure it shows as the spares are not really expensive the way they were in Ikon days. Ford worked hard to remove that image, but its now lagging behind, lost in the crowd. The small car they have needs a wow factor as already they have a handsome engine line up. Same goes for compact sedan. Work on Ecoport and give a new gen with same DNA and please don't give us 2.0 single turbo large SUV after spoiling us with the delicious 3.2. Ford has got one or two more rounds if they get things right and study the market.

Ford5 · 6th September 2021, 14:48

I’m reminded of the movie Inception. Toyota sent some dream merchant at Ford and Mahindra was the additional baggage that wasn’t needed. Fast forward 2021 the big T badge will still sell the Fortuner at maybe a bit more premium because you know Saar, resale, parts sab milega. Muhahah.

On a more serious note, I wish Toyota can further carry on the mind hacking with their attempt to counter (if at all) yankee fords that may come to India. RAV4, Prado (sensibly priced), etc etc.

The power of the T badge in utility vehicles is unstoppable.. so much so that competitor number 2 & 3 put together can only hope that Toyota raise their prices and they get a shot at selling more!

Hey.. what happened to Lexus? Shouldn’t they be here before Hyundai does a feature loaded Genesis jig? Remains to be seen if Hyundai also does a Fortuner redux albeit with an all new model and not low memory recall Sante Fe/Terracan type.

Ah, the stuff of men being possessed

CarNerd · 6th September 2021, 19:57

I hope this rumour becomes true and Ford exits India. We don't want a company that refuses to bring or design new vehicles with the latest features and options that can compete with others in terms of value for money. What prevents them from coming up with a car like the Magnite or Kiger or Seltos? When Chinese companies are coming up with good products, it's a shame that one of the oldest and biggest companies like Ford can't come up with better products for India. Ford's behaviour is like a Indian Govt company which thinks it is doing a favor on their customers by selling their outdated cars. Instead of mourning Ford's exit, I think we should celebrate!

AZT · 6th September 2021, 20:00

I'm surprised Ford isn't being pursued by one of the Chinese majors looking to enter. A JV would be a win-win. OTOH I think the market itself isn't expected to grow much in profit terms so the pie will more or less remain the same with all new entrants fighting for that same slice.

revmaxx · 6th September 2021, 22:36

Two manufacturing plants in India. Wondering on what calculation did Ford invest in 2nd plant. If it was for export then again what happened to those markets. A high tax regime market like India is a quick sand situation for low volume players.

Vitruvius · 7th September 2021, 02:07

It is sad to see a quality car maker planning its exit. Ford delivered a really great car with the Ecosport, and if I'm not wrong, it kind of ignited the crossover craze in our country. It doesn't mean every car the company makes has to be mass market. That's what makes a monopoly (read: Maruti), and kills choices.
Rising costs, COVID, and many people holding off purchases have created a perfect storm for companies that were probably already on the brink.

5th September 2021, 13:39	#196
Jude300 BHPian Join Date: Aug 2013 Location: Chennai Posts: 419 Thanked: 1,898 Times	re: Ford to wrap up India operations It's disheartening to see Ford being in such a quandary despite having an early check-in to the Indian market. As a two time EcoSport owner, I can confidently say that Ford did a great job to become more India focused and delivered some great products. They swapped the left hand drive aligned switches to right hand drive switches and also worked on cheaper spare parts, competitive service pricing, providing parts of accessories like only the mirror of the OVRM not replacing the entire unit of the mirror is broken etc. In fact the maintenance of my EcoSport was less expensive than my previous car, Estilo. However, their deviation from their DNA in products like the second gen Figo were not pardoned by the true Ford fans. To add to it, the narrower rear seat compared to the competition (Swift, Amaze etc) was a deal breaker for many Indians. Their cars were strictly 4 seater which accommodated the 5th occupant with a squeeze. Indians don't appreciate that. Cars like Renault Triber sell well because they offer to carry more people for the same price. You might laugh at it but that's a key criteria for people living outside the cities. They have always been a single product company i.e. only one successful product at a time in their portfolio and never could provide alternatives to a walk in customer. Lastly, they couldn't train their sales force to sell like Maruti. Walk in to a Maruti showroom and they will sell you the car as if you were their only customer even if it was the cheapest one. Ford got greedy with their successful products (arrogance and pricing) and least interested to sell the sales duds. I personally wish that they stay.
	(21) Thanks

6th September 2021, 08:52	#197
vredesbyrd BANNED Join Date: Jul 2019 Location: UP32/Freeport 7 Posts: 1,041 Thanked: 3,952 Times	re: Ford to wrap up India operations Does that mean used Endeavours will become affordable? Surely would get my hands on one if the continue service and repairs like Chevrolet did.
	(3) Thanks

6th September 2021, 08:55	#198
dsuman BHPian Join Date: Aug 2021 Location: GNT-HYD Posts: 168 Thanked: 693 Times	re: Ford to wrap up India operations I am on the lookout for a compact sedan and test drove Ford Aspire as well. Really loved the Drivability. Pity that an excellent package is marred by lackluster support from its maker. I cannot confirm authenticity of this information I was test driving the Tigor and in a bid to negotiate by pitting 2 cars against each other I spoke about Aspire. The Tata guys told me that Ford is expected to enter into a partnership like that of Fiat-Tata. So I will have to bring my Aspire to them for Service. Dont know if they were just trying to persuade me from buying Aspire or it is a fact. I have built a good rapport with them during my Nexon Purchase.
	(1) Thanks

6th September 2021, 10:53	#200
Stribog BHPian Join Date: Oct 2012 Location: Chennai Posts: 828 Thanked: 3,482 Times	re: Ford to wrap up India operations Yet another global MNC which tried to offer global cookie cutter models (after an initial spate of tuned to Indian taste models which were a massive success) and failed. India is a market of 1.3 Bn and it has its own unique signatures (which every major or minor market has), the dictum to OEM's or indeed any MNC is, don't go with a standard meta level "Asia" or worse "global" product offering. Take a look at the KFC vs McD story. McD is a powerhouse in fastfood in India (organised sector), with 300+ outlets currently open and the 170 it shut down in the North and East after a legal fall out with its franchise operator. With revenues of 2,000 cr and turning profit since 1st Quarter 2020 (Covid excepting), it is expanding aggressively and been an aspirational brand for middle class Indians since launch. From offering veg only branches in Gujarat, to spicy veg burgers, chicken offerings all tailormade to suit the Indian palette. Now KFC otoh was the first fast food major to start in India, had a huge load of controversy about its menu offerings, offered a menu similar to the one it offered globally, shuttered its 2 branches in 96 and only re-entered in 99. Since then however KFC has understood and replicated the McD playbook with a whole host of India specific offerings and also seen exponential growth since. Likewise, the likes of VAG, Ford, GM all believed in pushing THEIR vision for the market and have failed or in various states of failure. Contrast this with SAIC or Kia and even our homegrown TaMo and MaMo who have brilliantly adapted and continue to evolve (the absolute shocker of the XUV700 being the most recent) to offer compelling value to the customer. THIS is the only reason and anything else like "complicated tax structure" or "no enthusiasts" etc are just lame excuses by said OEM's. Perform or perish is how capitalism operates and well, since the mid 90's at least our auto market has had a level playing field.
	(40) Thanks

6th September 2021, 11:26	#201
Jhinchak BHPian Join Date: Dec 2020 Location: Bangalore Posts: 118 Thanked: 332 Times	re: Ford to wrap up India operations Adding to existing problems, ford has started to recall BS6 variant diesel vehicles. https://www.news18.com/news/auto/for...s-4165073.html
	() Thanks

6th September 2021, 13:19	#203
Pam81 BHPian Join Date: Jun 2014 Location: Pune Posts: 151 Thanked: 192 Times	re: Ford to wrap up India operations American business model has always been a hurdle in India. As many pointed out here, they are pretty good in strategizing but never have patience to see it through. All the financial returns and statistics were too strong of a expectation before they could garner a decent & consistent volume. EcoSport indeed was on it's way to become one of the trusted vehicle that balances signature Ford character in handling while offering practicality. It's a pity that they could not market it very well and got greedy before it could really reach in scale. They count only # of years to assess returns on their investments but not what they did to sustain & grow it among customers. Sales people do not want to talk anything other than saying, Ford is a well recognized brand in America. The verdict is clear in this case, you can't go on treating India like, always foreign loving customers. If you are too good in America, then you should go back to America because clearly you are not willing to be good in India. Things have changed drastically. The premium image of any OEM in their home country is not going to be same in India. Not anymore!!
	(7) Thanks

6th September 2021, 13:34	#204
dnabhi25 Newbie Join Date: Jul 2021 Location: Thane Posts: 18 Thanked: 24 Times	re: Ford to wrap up India operations Even I fear the worst here! I was eagerly waiting for the Figo to launch in automatic variant with the BS6 compliant engine, finally took a test drive last month and quite liked the handling and drive! When I went to book it, I sensed some uncertainty with the sales folks regarding delivery citing semiconductor chip shortage and also unsatisfactory answers when I asked them about the future of Ford in India. Backed out from booking the automatic Figo at the 11th hour! I am back to square one and can't decide which car to buy as my first vehicle. Should I increase my budget and go for the S-Cross as that's the only car which I like from the Maruti stable or even the new i20 N looks fab to me! Totally confused now Last edited by Aditya : 6th September 2021 at 21:12. Reason: Extra smileys deleted
	(1) Thanks

6th September 2021, 14:00	#205
aaggoswami Senior - BHPian Join Date: May 2007 Location: Vadodara Posts: 4,997 Thanked: 3,000 Times	re: Ford to wrap up India operations Concentrated efforts with focus, this is what they missed. I remember reading in ACI or Overdrive that Ford collected 40 excel sheet worth of data while developing Ford Fiesta for India, the one with tag "Go Fida" with Abhishek Bacchan. There was a joke that any car endorsed by Abhishek Bacchan would usually not work, example was Versa. That Ford Fiesta went on to become a success, and it deserved that success. Note that this success came after Ikon, a car with tag of fuel guzzler. So in my view its not that image cannot be changed with right product. But what Ford missed is taking off from where Fiesta left. Their study wasn't as deep, they tried to offer car at price defying value quotient people got accustomed to via Figo and Fiesta. Lost focus and gone. Throwing money wont always get success, it has to directed in correct path. Endeavour is another example. Ford rejigged the variants so many times that a potential buyer walking in via word of mouth feedback would be confused. That customer would sprint towards Toyota and get multiple drivertrain and fewer variants coupled with a nice showroom experience. Sale deal sealed for Toyota. New Figo and Aspire lag behind rivals in all domains, have to hand it to rivals on modern they feel against Figo/Aspire. Look at Ecosport, it still is competitive despite arrival of many rivals. But in mass market they took a step back. With Freestyle they tried to make a comeback, but its a unique proposition. Ford is actually a nice case study for management books. How cars like Figo, Fiesta Ford made success and eventually those nameplates couldn't rake in numbers. MG just walked in with a product which wasnt segment leading and costing over a million bucks but still is going places. Kia thanks to Hyundai got in and now it needs no introduction. Its not that Ford didnt try, but it was slow. They took feedback from market for spare parts and sure it shows as the spares are not really expensive the way they were in Ikon days. Ford worked hard to remove that image, but its now lagging behind, lost in the crowd. The small car they have needs a wow factor as already they have a handsome engine line up. Same goes for compact sedan. Work on Ecoport and give a new gen with same DNA and please don't give us 2.0 single turbo large SUV after spoiling us with the delicious 3.2. Ford has got one or two more rounds if they get things right and study the market. Last edited by aaggoswami : 6th September 2021 at 14:04.
	(8) Thanks

6th September 2021, 14:48	#206
Ford5 BHPian Join Date: Oct 2011 Location: Bangalore Posts: 502 Thanked: 341 Times	re: Ford to wrap up India operations I’m reminded of the movie Inception. Toyota sent some dream merchant at Ford and Mahindra was the additional baggage that wasn’t needed. Fast forward 2021 the big T badge will still sell the Fortuner at maybe a bit more premium because you know Saar, resale, parts sab milega. Muhahah. On a more serious note, I wish Toyota can further carry on the mind hacking with their attempt to counter (if at all) yankee fords that may come to India. RAV4, Prado (sensibly priced), etc etc. The power of the T badge in utility vehicles is unstoppable.. so much so that competitor number 2 & 3 put together can only hope that Toyota raise their prices and they get a shot at selling more! Hey.. what happened to Lexus? Shouldn’t they be here before Hyundai does a feature loaded Genesis jig? Remains to be seen if Hyundai also does a Fortuner redux albeit with an all new model and not low memory recall Sante Fe/Terracan type. Ah, the stuff of men being possessed Last edited by Ford5 : 6th September 2021 at 14:55.
	(5) Thanks

6th September 2021, 19:57	#207
CarNerd BHPian Join Date: Nov 2014 Location: Honda City Posts: 468 Thanked: 3,213 Times Infractions: 0/1 (5)	re: Ford to wrap up India operations I hope this rumour becomes true and Ford exits India. We don't want a company that refuses to bring or design new vehicles with the latest features and options that can compete with others in terms of value for money. What prevents them from coming up with a car like the Magnite or Kiger or Seltos? When Chinese companies are coming up with good products, it's a shame that one of the oldest and biggest companies like Ford can't come up with better products for India. Ford's behaviour is like a Indian Govt company which thinks it is doing a favor on their customers by selling their outdated cars. Instead of mourning Ford's exit, I think we should celebrate!
	(4) Thanks

6th September 2021, 20:00	#208
AZT BHPian Join Date: Nov 2019 Location: Toronto Posts: 693 Thanked: 2,659 Times	re: Ford to wrap up India operations I'm surprised Ford isn't being pursued by one of the Chinese majors looking to enter. A JV would be a win-win. OTOH I think the market itself isn't expected to grow much in profit terms so the pie will more or less remain the same with all new entrants fighting for that same slice.
	(2) Thanks

6th September 2021, 22:36	#209
revmaxx BHPian Join Date: Apr 2010 Location: Mangalore/ Mahe Posts: 54 Thanked: 38 Times	re: Ford to wrap up India operations Two manufacturing plants in India. Wondering on what calculation did Ford invest in 2nd plant. If it was for export then again what happened to those markets. A high tax regime market like India is a quick sand situation for low volume players.
	() Thanks

7th September 2021, 02:07	#210
Vitruvius BHPian Join Date: Aug 2014 Location: India Posts: 66 Thanked: 303 Times	re: Ford to wrap up India operations It is sad to see a quality car maker planning its exit. Ford delivered a really great car with the Ecosport, and if I'm not wrong, it kind of ignited the crossover craze in our country. It doesn't mean every car the company makes has to be mass market. That's what makes a monopoly (read: Maruti), and kills choices. Rising costs, COVID, and many people holding off purchases have created a perfect storm for companies that were probably already on the brink.
	() Thanks