News on Ford India 0

There has been recent news arising from Ford India regarding poor domestic sales results and a new focus on diesel models.

The Ford India President Michael Boneham claimed many motorists in the country are swaying towards diesel models due to the increasing prices of petrol. He said “Petrol prices are high. I think, for us that creates a different environment because more people are pushing towards diesel now,”

He continued to say that demand for diesel cars is certain to rise. He was quoted to have said “There is a lot of hidden demand and companies such as ourselves are not able to meet the free demand for diesel. So, we continue to work through that,”

The Ford Figo is a hatchback which has its diesel variant selling very well. Other diesel variants of models in the Ford India line-up are also selling very well.

Domestic sales of cars have declined according to official figures. They declined by 10.36% from 9.026 last October to 8,091.  Boneham said “It is a tough domestic market with interest rates rising. The 0.25 percentage point (increase in policy rates by RBI) last week was another difficult thing to swallow.

He believed that domestic sales would get better in 2012. “We would like to see more positive sentiment. I think the expectation is that we should start to see better new year,”

A new plant located in Gujarat is already under way. At the new factory, newer models will be developed and released in India. Boneham was quoted to have said “We will be rolling out a lot of new models from our Gujarat plant. We have talked of eight new models in the next five years and essentially a vast majority of them will be in the small car segment.”

Diesel cars are well known to be more a lot better in terms of fuel efficiency compared to  petrol. A major problem throughout the world is the fact that petrol prices continue to rise, pricing many people off the road. Motorists are very frustrated that petrol companies announce major profits, meaning they could potentially lower the prices of petrol.

Ford India will certainly look to build new diesel models at Gujarat.  It may help the amount of domestic increase too.