Ford Looks East For Growth
A few weeks ago, I wrote about how Ford is enjoying booming sales in India for their small car, the Ford Figo. Sales of the small car purpose-built for the Indian and other emerging markets jumped 267 percent from last year. Ford is staffing up for it. Well, Ford is now going to take the plunge in India. Well, at least they’re planning on it.
The Times of India reports that Ford is starting exploratory work for a second factory in India, planning to launch up 8 new models by 2015 and committing more money to the region. “China and India are the two most important markets for Ford vehicles globally, and we are set to increase our commitment and stake in India,” said Joe Hinrichs, President of Ford Asia-Pacific and Africa, “We are taking the first step towards realization of this with the Figo, as it is on course to be exported to 50 new markets including Mexico, South Africa and North African countries.” Hang on. “China and India are the two most important markets for Ford vehicles globally?” I wonder where Ford ranks the United States market?
Although Ford is being coy about a second factory for India (Mr Hinrichs was quoted as saying “We are continuing to explore and all options are open,”) it won’t come as a massive shock if Ford does build another factory in India. The current factory near Chennai is running at near peak production and if Ford wants to realize their plans of exporting the Figo and making India a small car hub for Ford, then they’ll need to invest in India, big time. Gotta speculate to accumulate.
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