Ford India Private Limited (FIPL), a subsidiary of American multinational auto major Ford Motor Company, has announced to make the country its new export hub. The company has decided to export Indian made models to over 50 international auto markets in the next few years. The announcement came through Ford India's next President and Managing Director (MD), Joginder Singh on November 29, 2012 in New Delhi.
In an interaction with press media in the National Capital, Joginder Singh, said, “We are creating an export hub in India. Our small car Figo is exported to 35 markets around the world and our plan is to increase this to 50 markets over a period of time.” Singh also affirmed that the American firm has invested a sum close to $ 2 billion in domestic auto industry and the company is working towards selling 40 per cent of its engines in overseas automobile markets. Reportedly, Joginder Singh will take command of Ford India from the hands of Michael Boneham, Head of Ford India for last five years, on November 1, 2012.
Highlighting the company efforts towards assembling engines on Indian turf, Singh added. “With the Sanand facility in Gujarat coming up, the combined engine output will be over 6 lac units annually. Out of that, 40 per cent will be exported... We are delighted to have India as the export hub." Further, FIPL has also planned an investment of $ 1 billion for the construction of its second manufacturing unit in the country, which is expected to start production by 2014. Further, the upcoming Ford India vehicle assembling facility is believed to be adept at producing a yield of up to 4.4 lac vehicles each year.
When enquired about his take on Ford India's plunging domestic market share, Singh said, “As per SIAM data, our current market share is under 3 per cent. We are on the verge of great things to happen. We expect a significant jump in market share with our plans to have eight new models by middle of this decade.” Commenting on the company's upcoming new models and plans for the country, Singh further added, “Our new compact sports utility vehicle EcoSport will also be exported from India. We will launch the vehicle next year.”
The American auto major has also revealed intentions to upgrade its product portfolio, increase annual production yield along with augmenting its sales and dealership network in the country. At present, FIPL has some 250 touch points and is looking towards
increasing the number by 100 per cent to 500 by end of 2015 in the country. Reportedly, Ford India's total vehicles plunged by 6.35 per cent at 7,577 units in October 2012, as against 8,091 units sold during the same period last year in Indian auto market.
