Ford plan to cut car prices in India 0

Ford has said that they plan to reduce the price of their vehicles in India. The pricing of cars is all important in the Indian market, especially in the small car market. Competitive prices will go a long way in helping sway potential customers away from rivals.

Ford sales declined, India’s car passenger market grew

Ford sales in India declined from January to October of last year by as much as 4 per cent, which just 75,604 cars sold. The Indian passenger market increased by 9 per cent last year from January to October. That particular statistic shows how poorly Ford had been performing. They were unable to take advantage of a growing market where they may have easily made more profits.

Ford’s line-up too old

Reasons behind this were put down the age of the Ford line up in the country. The car’s standards were not up to expectations and were put in the shadow of more advanced vehicles.

Ford Fiesta sales less than one thousands units per month

Ford Fiesta sales were particularly poor last year and failed to meet previous anticipations. They were slow from its launch in the country in July. Fewer than one thousand were sold per month. Indian motorists see the car as being an overpriced small car which is not worth the money. Many prefer the alternatives offered by Hyundai with the Verna, Honda with the City and Volkswagen with the Polo. In order to compete, Ford is offering major discounts on the Ford Fiesta.

Prices need to be reviewed

Nigel E Wark, Ford’s Executive Director said that prices needed to be reviewed if Ford are to become a success in India. He said “There is scope for reviewing our product prices as local market dynamics are changing so fast. While we continue to go strong on the Figo hatchback, prices of other products need to be rationalised in tune with new launches in the market and increased competition.”

Honda have previously carried out the exact same strategy and reduced the prices of their cars for their Siel model. The City sedan and the Jazz hatchback prices were also reduced. Fiat lowered the price of the Punto in order to attract customers. It is clear that the Indian market love a bargain. Ford is taking advantage of that fact in order to gain more customers.