In what seems apparent, American auto maker Ford is taking India seriously as it recently announced that the company is planning to make the country its global export hub, keeping in mind the growing demand of hatchbacks and Sports Utility Vehicles (SUVs) in Asia and Africa. On questioning Dave Schoch, President of Ford Asia Pacific about the company's decision despite downturn in the Indian car market, he replied "Despite current macroeconomic factors and ongoing market challenges, India is a big part of our global strategy." He also added that the company also plans to make the subcontinent region as long term investment zone for the company.
Ford has been active in the Asian continent in the recent past, considering the manufacturing facilities that it is setting up in China, India and Thailand. Besides the availability of skilled manpower, in order to boost sales, the cost of production is gradually low in these countries which makes Asia a viable option for car companies to produce their cars.
According to the company, it expects the demand for hatchbacks to account for almost 60 per cent for global markets, out of which Asia and Africa shall contribute to half of the sales. Ford told that it also aims to export vehicles to more than 50 countries from India during the course of next five years. Commenting on this, Schoch said "We're significantly increasing our Asia-Pacific production capacity to meet the growing demand in this part of the world."
With Ford planning to make India as its export hub, it has joined the bandwagon of numerous companies that have adopted similar strategies. The country's largest exporter of passenger cars, Hyundai had adopted this policy long ago and its revenues have grown by leaps and bounds since then. Apart from South Korean company, Nissan too exports its vehicles to different parts of the world from India and it plans to double the investment in the Indian auto industry to 5 billion by the next five years in its efforts to increase the market share.
In the meanwhile, the Indian wing of Ford recently announced that amid declining demand in the country, sales of the company has increased by 7 per cent during the month of August 2013, which were mainly boosted by its compact SUV EcoSport.
It must be noted that Ford has already invested a sum of 1 billion dollars in building a new plant in Sanand, which lies in the western part of Gujarat. This plant is said to have a annual production capacity of 240,000 vehicles, while at the same time rolling out 270,000 engines. The company's other functional plant at Chennai has a capability of manufacturing 200,000 vehicles and 340,000 engines in a year.
