Ford India recently came to the fore with its compact SUV EcoSport, which at present is oozing with popularity amongst the price sensitive Indian car buyers. This much awaited compact sports utility vehicle was launched in the month of June this year and has been making ripples in the car market since then. With its affordability, capability and fuel economy Ford EcoSport has emerged as an effervescent addition to the existing fleet of vehicles in the SUV segment. This has resulted in the elevated demand of the same as against its competitors, Renault Duster and Nissan Terrano.
Ford reportedly sold 4,715 units of EcoSport in India within just two months, compared to 3,089 units of the Renault Duster. The company received as many as 30,000 bookings in the fortnight following the launch of the EcoSport in India. What intrigued potential buyers about this SUV after it first made appearance are factors such as price, stature and splendid looks. “Of the total number of bookings Ford has received for the EcoSport so far, it has managed to deliver only 10,000 units” said Vinay Piparsania, Executive Director of Marketing, Sales and Service of Ford India. However the picture was completely different altogether in July, when Ford sold 4,715 EcoSports and outsold Renault Duster by 1,600 units. Piparsania also said, “We did not anticipate this kind of demand. The orders we received are higher than the base plan and we are working with our suppliers to stretch production to its best.”
According to the trade analysts, Ford EcoSport lured many potential customers when it was unveiled at the Delhi Auto Expo in January 2012, way before it arrived in the Indian automobile market. This swamped Ford with gamut of bookings within a week of its launch, which resulted in a huge backlog as the company is unable to meet the increasing demand for EcoSport. “Buyers were initially told by Ford that they may have to wait for two-three months to get their EcoSports, but that period has now stretched to nine months for all diesel variants”, said a sales manager at a Chennai-based Ford dealership.
As indicated, if Ford India fails to boost production to meet the demand for EcoSport, it will lose customers to its rivals, namely Renault Duster and even the Maruti Suzuki's compact SUV XA Alpha, which is expected to make in-road next year. In a scenario like this, what can add to the melancholy of American car maker is the recent hike in prices by Rs. 30,000 to Rs. 40,000, depending on the variant. This need was been borne out of factors such as inflation, high interest rates and the declining value of rupee against US dollar. Ford India has already invested $142 million to widen its capacity to 200,000 cars a year at its Chennai facility in order to support the local sales and export of EcoSport.
Speaking on this, Piparsania mentioned “We are pushing the pedal and running at beyond optimal levels within two shifts at our facility in Chennai and are ramping up even our suppliers and working hard with them to meet the high demand of our products.” It would be interesting to see whether Ford India is able to meet the increasing demand for EcoSport, considering the fact that many who were expecting to receive their car this festive season, have been stranded all disappointed.
