What made Ford exit the Indian market is it affects our reputations, will it impact our Foreign direct investments, and will it affect the entry of tesla in India?
Let us get into Today's video.
Ford started their second innings in India in 1995 after the Narasimha Rao's government open trade policy. Ford entered with a 50:50 partnership with Mahindra and Mahindra and later bought the entire stake. Ford set up their manufacturing plant in Maraimalai Nagar in Chennai.
Ford Launched Escort, Ikon, Endeavour, Fusion, Mondeo, Figo, Fiesta, Ecosport and Freestyle in India.
The main issue was only Ford Ikon, Old Endeavour, Ecosport are the models focused on emerging markets like India.
They never understood the Indian market and the Changing needs. They brought a small car (Ford Figo) only after 14 years. Whereas Maruti and Hyundai understood the Indian consumer needs. When the Indian government announced the tax reduction for Sub 4 metre length cars, Ford was the first to introduce Ford Ecosport. It was the most successful model for Ford, but the last momentum by not upgrading the models and eventually Brezza from Maruti took over the spot.
One small example is they never modified the turn indicator for Right-hand drive vehicles in India.
Ford smelled success in the high-end SUV segment with Ford new endeavour, but it could not cross Toyota Fortuner.
Engine Options:
Ford had excellent diesel engine options(Duratec, Ecoboost) but never packaged it very well in India. Like FIAT survived in India by selling their engines to Maruti, Tata, MG and GM, but Ford never got into any arrangement like that.
Packaging and Pricing:
Indian Customers are tech-savvy and need maximum features at affordable prices. Ford, unfortunately, never understood it correctly; new entrants like Kia and MG could taste immediate success, whereas Ford could not do it for 25 years.
Ford set up the Sanand Plant in Gujarat, in 2015 spending close to 6000 crores built only for the exports market, whereas they could have utilised the Chennai plant. However, wrong decision followed by global slowdown badly affected Ford survival in India.
Marketing:
None of the advertisement campaigns could recall; their last campaign about the service cost came very late.
Mahindra Tie Up failure:
It was signed in 2018 for joint manufacturing of three SUV models and engine sharing with Mahindra. Unfortunately, the deal was called off in 2020. It was their final nail in the coffin.
Ford Global:
If you look at Ford Globally, they are trying to restructure the business operation called Global Redesign. As per this plan, they are trying to exit the markets where they cannot sell and focus only on the key markets.
Contents
0:10 Intro
0:41 Cars in India
2:36 Engines
2:58 Packaging
3:32 Marketing
3:42 Mahindra JV
4:01 Global
4:46 Conclusion
Credits:
Images are sourced from Internet sources and intended only for educational purposes. If you have any concerns, please write to me at barathan.online@gmail.com.
Images and videos are from Pexels and Pixabay. Com. Background score from Pixabay.com
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