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Ford Not To Build Low Cost Nano Competitor
While several carmakers have said it would not be financially viable for them to build and market a car that needs to be priced very low Ford has said the ultra-low cost car segment is not a high volume sales segment. The fact that The Tata Nano has not set the car market on fire is being touted as another reason.
We had earlier reported that the Nano's sales had dropped drastically by 64 per cent in July. Tata Motors has itself said it needs to sell at least 10,000 units of the Nano per month to make a profit and the highest ever monthly sales has only been about 9,000 units.
Ford India president Michael Boneham while explaining the reasons behind the carmaker not wanting to build a Nano competitor said more than half of the buyers of Figo, the company"s premium hatchback, are first-timers. This means car buyers are not looking at the Nano as their first car and are preferring premium hatchbacks.
Joseph R Hinricks, president, Ford Asia Pacific & Africa said: “The Tata Nano has probably not achieved the volumes the media thought it would. Ford stands for driving dynamics, safety etc. You have to stand for something as a brand. We want to make sure our brand has continuity in India."
General Motors, Renault and Nissan are some of the carmakers that planned to compete with the Tata Nano and then back tracked. Although Ford has never officially said it wanted to build a low cost car, today's statement by Mr Boneham indicated the carmaker had at least considered it. General Motors India President and Managing Director Karl Slym had earlier said: “t (small car) was under discussion when the Rs1 lakh car (Nano) came in. We have reached a decision point that it is not right for us."
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