Ford Will Not Introduce Any New Products In India Till 2020 — Enters Cost-Cutting Mode

By Rahul

Ford plans not to launch any new cars in the Indian market till 2020. The American car manufacturer has also decided to slow down hiring in India, while also doing away with one of the two annual increments.

Ford India is said to be working towards aggressive cost-cutting measures, to realise profits. For now, all future product introductions will be through the joint development between Ford and Mahindra.

Ford Cutting Down Costs; Will Not Introduce New Cars in India Till 2020

According to TOI, Ford India will also be moving from their corporate office in Cyber City, Gurgaon to a relatively smaller location in the same city. This is to further help them reduce the rental costs of their current office. Ford will also be shifting a large number of its employees to Chennai.

Ford Cutting Down Costs; Will Not Introduce New Cars in India Till 2020

A spokesperson from Ford has stated, "The focus on driving competitive costs is important to ensure operational fitness. We are reducing material and structural costs to ensure we use our capital in areas that customers appreciate and value."

He further added, "Each and every position is being evaluated thoroughly. There are positions in many departments which are vacant." However, the spokesperson did mention that hiring will still be done at the company's engineering and technology centre in Chennai.

Ford Cutting Down Costs; Will Not Introduce New Cars in India Till 2020

Ford India sales have reportedly been flat all-through last year. Although, the company did perform well in the export market. The export market for Ford India grew to USD 3.4 billion (approximately Rs 22,393 crore) in revenues in 2017-18, against the USD 2.8 billion (approximately Rs 19,385 crore) Rs in the previous year.

Ford Cutting Down Costs; Will Not Introduce New Cars in India Till 2020

The company in 2017, registered a marginal one percent increase at 87,588 units in sales in the domestic market, as compared to exports which grew by 15 percent to 1,75,196 units.

Thoughts On Ford In India

Ford Cutting Down Costs; Will Not Introduce New Cars in India Till 2020

India is said to be one of the most promising car markets in the world. However, Ford is still facing declining sales in the market. The company recorded just 33 percent of its overall revenue from the Indian market while performing exceedingly well in exports. This is a raising concern for Ford in India.

Read more on: #ford
Story first published: Wednesday, August 29, 2018, 16:06 [IST]
X

Get Instant Auto Updates From DriveSpark

We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Drivespark sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Drivespark website. However, you can change your cookie settings at any time. Learn more