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Ford India cuts down production over declining Figo and Aspire sales

Ford India cuts down production over declining Figo and Aspire sales
Nikhil Puthran Nikhil Puthran Tuesday 19 April 2016, 14:21 PM

Ford India has been trying hard to hold a considerable market share in India. Until now, the brand has witnessed immense success only with the EcoSport. The recently introduced Figo hatchback and the Aspire sedan initially did attract buyers, but are now finding it difficult to hold interest for long.

The targeted monthly production for the two models – Figo and Aspire which averaged at 20,000 units have been reduced to average 10,800 units a month. But even after cutting down the production by half, the average combined production is at 6,500 units a month. The Figo faced strong competition in its segment with the likes of the Grand i10, Maruti Swift and the Tata Bolt. While the Aspire faced stiff competition from the Maruti Dzire and the Honda Amaze in India. The Gujarat facility has also been under pressure to begin exports to Europe early this year, but it has been delayed for unknown reasons. For now, the plant exports to Middle East, South Africa and Mexico.

From October 2015 to March 2016, the Figo witnessed 60 per cent drop in sales, while the Aspire witnessed a 74 per cent drop from August 2015 to March 2016. The multi-product strategy for the brand has clearly not been working in their favour. A Ford spokesperson stated, “The Indian automotive industry has been experiencing a weak consumer demand. Despite sustained levels of discounting, the B-segment, where the majority of automotive sales reside, has been flat in the first quarter.”

Back in March, Ford has announced a price cut of up to Rs 1.12 lakh for the EcoSport owing to strong competition faced with the launch of Maruti Vitara Brezza.

Source: CNBC-TV18

 

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