Ford India is now facing a profit decline and resorting to cost-cutting actions such as not employing more staff and not launching any new cars until 2020.
Ford’s car models such as the Freestyle or the EcoSport are well-known for their good handling and steering feel as well as feedback. The Ford Endeavour has also been successful as a premium SUV with its versatility and many amazing features. However, in Indian auto market, these vehicles have not managed to help the company earn a good profit.
Many cost-cutting measures have been taken by Ford India
According to a press release, Ford India has taken many cost-cutting measures, one of which is to refuse to recruit more employees. As usual, two yearly increments to staff will be provided by Ford in March and October. Unfortunately, this year, the increment in October has been cancelled.
Furthermore, Ford India has no choice but leave its headquarters in Cyber City, Gurgaon to be located in another smaller and less comfortable place in the same city. The company will also move many of its staff members to the Chennai office. These cutting-cost steps were first taken in 2016 and have continued to be implemented until this year. Additionally, the hiring process has been even also decelerated by the company with many important positions left unoccupied.
Ford Endevour is well-known for its adaptability and excellent features but cannot compensate for the minimal sales of other models
Ford India has done a good job in export business
Established in India 20 years ago, Ford has been able to hold only a minimal share in the auto market. A profit decrease also suggests that no new cars will be launched by Ford India till 2020.
Although Ford India has a poor performance in the domestic market, it is still doing a good job in terms of export business. The profits gained from exported cars make up for 65% of the total company profits. Surprisingly, Ford India seems to follow the GM’s path in India. GM did badly in the Indian market but it has used India as a headquarters for car production and has been one of the most popular car exporters here.
Ford Eco Sport is an excellent vehicle but cannot help Ford in India market
Ford India’s future plan
We do not know for sure if Ford will imitate GM or not. But one thing seems to be clear is that all plans to release new products have been halted. The company will focus on improving its current models to satisfy with the BS VI emission norms. Next-gen Aspire compact sedan and Ford Figo hatchback will be ready for launch in India next year. Mahindra and Ford have cooperated with each other to manufacture a new SUV, which is based on next gen XUV500 and the first product from the Mahindra-Ford joint venture.
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