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United States based Ford Motors has formed an International Markets Group (IMG) that consists of 100 emerging markets as a separate cluster. The IMG unit will be operational by January 2020, and the company says that Ford India, supported by the Mahindra alliance will play a pivotal role.
Anurag Mehrotra, Ford India's Managing Director for Operations has been tasked with product portfolio management, along with the Mahindra alliance, to cater to the 18 million unit-per-annum market. A Ford India spokesperson confirmed the genesis of the IMG, and the responsibility assigned to it's Managing Director.
Sharing of vehicle architectures and engines has already been announced, and sources have confirmed that the discussion goes beyond India to build economies of scale and participate in 'next growth' opportunities outside of India.
Ford has been in the Indian market for over two decades now but has been unable to build volume sales beyond 1.2 lakh units per annum. Mahindra's passenger vehicle division has also witnessed low sales at between 2.5 lakh and 3 lakh units over the last five years.
The export markets have remained sub-optimal for Mahindra with total sales standing roughly between 5 and 7 percent. Both Ford and Mahindra are likely to shift export focus to emerging markets because of new regulations in already evolved markets of Europe and North America.
A source that wished to remain anonymous said that the creation of the IMG would accelerate Mahindra's globalization strategy, and on the alliance front, joint projects on B and C segment SUVs and MPVs would help Ford optimize product development costs because of Mahindra's cost sourcing capability.
In addition, Ford has committed one billion United States Dollars to their India markets as their India operations achieved sustainable profits twenty years after they began operations in the country.
Mark Ovenden, who was president for Ford's Middle East and Africa divisions, has been named President of the International Markets Group and will lead its development. The IMG will become a reporting business unit from 2020.
The company's new IMG business unit will oversee almost 100 markets, including operations in Africa, Australia, India, Mexico, the Middle East, New Zealand, South Korea, and ASEAN countries.
Ford Global believes emerging markets will account for one in three vehicle sales in the future, and will witness some of the highest growth rates.
The formation of the IMG is said to be based on Ford's leading market positions in compact pick-ups and commercial vehicles. The IMG unit will optimize the company's import portfolio and maximize after-sales opportunities.
Thoughts About Ford India And Mahindra Driving 100 Emerging Markets
Ford has always been at the forefront of any automotive related race. With the creation of the International Markets Group, the company can focus on newer markets where business has lesser government restrictions. Kinda makes one think about the game on a different level, doesn't it? Old markets, new markets, governments thinking of future growth, and manufactures thinking of their next 100 million. And here we are, thinking of the next car that someone is ready to launch! Tsk Tsk!