Ford executives are aware that in China it’s very difficult to capture a larger share of the market because of strong competition. In India the situation is different and quick investments can provide a dominant position to the U.S car manufacturer. “There are many brands that are struggling in China. 90 after some calculations. Because there are fewer competitors, we can do better in terms of market share, in India,” said for CNBC president for Asia-Pacific and Africa Division of the Ford group, Joe Hinrichs.
“Maruti Suzuki is currently the dominant player in the Indian market with a share of 47%. But we like where we are going since we increased our market share over the past two years. We have production capabilities, new models ready to enter the market and ongoing investment,” the official continued Ford. The 3% market share of Ford on the huge Indian market is likely to increase with the completion of a new vehicle assembly plant and the production of engines worth $1billion located in Gujarat province. “To be successful in India, we have to sell small cars and Ford has never been strong in this area. However, we can now claim this area of the market because we have the necessary ‘size’,” said Hinrichs.
The most sought Ford model by Indian customers is the small Figo, Asian version of former Fiesta. It costs between $6.700 and $10.200 and represents about 75% of Ford sales last year. “After we launched the Figo, our sales have tripled. This meant a lot to our brand and dealers,” Ford official said adding that in the near future the company will launch eight new models on the Indian market and will increased its dealer network by adding a new partner “every ten days”.
India is not a market targeted only by Ford. Most producers that have missed entering the Chinese market are now trying a fast development in India copying the model from those who have asserted themselves in other major Asian countries. Only that, while the Chinese market was “almost virgin” when big companies in Europe, America or Asia have invaded it, in India there is a big competitor for them: Maruti Suzuki.
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