Ford following the market trend in India 0

Ford will be focusing on developing small cars for the Indian car market. These particular vehicles will be low cost and developed for exportation too within the country.

Export market to be vamped up

Cars developed with the country will be exported to the likes of Africa and the Asia Pacific. India are keen to grab a stake in the small car market in emerging car markets in order to catch up with rivals. The makers of the Fiesta and Focus certainly have all the right equipment and expertise to make a successful small car in these particular regions.

Over the next three years Ford will release a number of new small cars in the Indian car market. Car capacity is expected to be doubled. Previously Ford has been responsible for neglecting these emerging car markets and missed out on great potential profits.

Last year Ford exported a total of 30,000 cars from India in 2011. This equated to a massive on fifth of all production. Ford hope to gain 50 markets for export with their cars the Figo, Ikon and the Fusion.

Why didn’t Ford focus on small cars earlier

It does seem a bit strange that Ford were not targeting the small car market in India. This particular segment is accountable for 70 per cent of total vehicle sales in the country. Ford have not been in touch with what Indian customers demand which has made them lose out. Ford must now learn from their mistakes and now focusing on developing affordable small cars.

Ford started off in India in the year 1995. Hyundai Motors entered just one year later and were clever in immediately offering affordable small vehicles. Ford introduced larger vehicles which were quite expensive considering the market. In current times, Hyundai are performing better with 616,000 cars sold last year. That equates to five times more than Ford.

Price is all important in India

In order to purchase a saloon family car in India, many families would have to take out a bank loan. This is why the small car market is the most successful, as they are priced the lowest.

Nissan moving production to India

Nissan have also moved production of cars to India in attempt to save on costs. A huge 80 per cent of the Micra sub production occurred in India last year, with total numbers of production equalling 60,000.