NEW DELHI: US car giant Ford said yesterday that it aims to roll out eight new cars in India by mid-decade as it seeks to aggressively grow its tiny share of Asia’s third-largest car market and catch up with rivals.
The company, which has just under three percent of the Indian car market despite being in the country since 1995, is aiming to turn around its fortunes — stepping up its investment in the country to $2bn.
“This commitment is a new recognition of the opportunities that lie ahead for Ford in India,” said Jogindar Singh, who will take charge as the new president of Ford India from December 1, replacing Michael Boneham who is retiring. “Never in the history of Ford has it brought out eight models in such a short time,” Singh said.
He said the company expected “a significant jump” in market share as a result of the roll-out of the new models but refused to give an exact target. Ford, whose big, costly cars in earlier years in India were nimbly outmanoeuvred by rivals with smaller, cheaper vehicles, is revamping its strategy.
Most of the new cars to be rolled out will be in the small car segment, which accounts for 70 percent of Indian car sales, Singh said. Ford’s earlier strategy in India “was flawed”, Boneham conceded to reporters as he introduced his successor Singh to reporters.
Ford also said India will be a small car export hub with plans to sell its vehicles in 50 countries, up from 35 now. Among its outlays, Ford is spending $1bn building a second factory in Sanand, in the western state of Gujarat, to accompany its existing facility in Chennai. Singh said he expects the new Sanand plant, which will give Ford the capacity to make an additional 440,000 cars a year.
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