Ford Motor Co is about to re-evaluate its strategy in business in the Indian market. Over the years, the company hasn't improved its performance in the domestic market.
It is reported that Ford Motor Co is to make a significant and exciting global announcement, representing a major stride in our commitment to India, innovation, and One Ford." The company will announce it today in the presence of Mr William Clay Ford (Jr), Executive Chairman, Ford Motor Company, along with senior members of Ford's leadership in Chennai.
In a presentation made at the Ford Investor Day in Dearborn on September 15, 2016, it said, "Ford is taking a new look at how to lead in select emerging markets. The company sees Russia and South America positioned for recovery, ASEAN remaining profitable and a path to profitable growth in the Middle East and Africa. As it pushes for a path to profitability in all emerging markets, Ford is re-evaluating its strategy and business model for India."
Mark Fields, Ford President and CEO, quoted in the presentation, "During the past six months, we've been focused as a leadership team on building Ford's expanded business model - with a more clearly defined vision, strategy and roadmap on how to deliver success. We've been making important decisions and have agreed on three key principles to guide future capital allocation: where to play, where not to play and how to win."
Now, Ford India has two plants in the country - in Chennai, Tamil Nadu and Sanand, Gujarat. Both plants combined produce 4,40,000 units per annum and it produced 189,433 units in 2016-17 and sold 79,944 vehicles.
When it comes to export, Ford India ships 110,840 units, but surely there is a lot of under-utilised capacity at both the Indian plants.
In India, Ford manufacturers the Ecosport, Endeavour, Figo and Figo Aspire. Recently, the company launched the Mustang as a halo CBU product. The company currently has a 3.11 percent market share in the Indian passenger vehicle market.
Ford Motor Co's future global growth plan will see it fortify its core business, building on leadership in trucks, vans, commercial and performance vehicles, growing utility vehicles and transforming underperforming areas, including luxury, small vehicles and emerging markets.