Ford's India story: Successes and challenges

India's slowing growth rate has put a spanner in the works of the much sought after auto sector in India. Marred in sluggish sales and volatile demand, the country's top auto players are being forced to think out of the box and line up big launches to keep the auto buyer interested. The dream run is now being put to a test drive.

Ford's sales in India dropped in the latest data revealed for April even though exports doubled year on year.

The company continues to keep a parallel focus on exports which has put India on the global map for Ford making it the hub for the small car Figo.

Ford's Eco Sport is the most awaited car from its stable and has generated significant interest among auto enthusiasts and the public. On Tee Time With Shaili Chopra on ETNOW, Ford's Nigel Wark, executive director (marketing, sales and service), shares that the success of the Indian market so far has also come with its share of challenges - in particular the diversity in demand and a tough business environment over the last few years.

How do you plan to grow the business with new plants coming up and India gaining focus in the emerging market stable?

We expect 60-70 percent of our growth in the next ten years to come from its Asia Pacific and Africa where in India and China will be among the growth markets. Ford has tripled its sales volume in the last two years with the launch of the Figo and today has more than 1,50,000 owners of the Figo.

We have used India as a hub exporting  from the Figo to more than 34 markets. What makes the journey exciting is that eight new products are coming to India by middle of the decade. By 2014, when our new facilities will be ready Ford in India will be well poised to deliver a capacity of 610,000 engines and 440,000 vehicles.

How is the Indian market more challenging than others?

In India one has to deal with tremendous diversity and from a marketing stand point one approach to marketing does not fit all. Consumers wish to see something that is credible and believable.

Today they rely on word of mouth than anything else. At Ford, we always look at ways to stay connected with the consumer across regions and talk in their own language.We are delivering on experiential marketing opportunities to get people engaged with the brand at multiple touch points and in fact taking it step higher where real consumers are co-creating the content and involved with the brand.

And our recent marketing campaigns such a Swap Your Drive and Discover Smart Drive have allowed us to do the same. Your Figo is the big success story in India as you have managed to make the country your hub for over thirty countries. How does it scale up from here?

Ford India's entered into the small car segment, where 70 per cent of total car sales happen, and saw phenomenal success with the most awarded car-ever, the Ford Figo.

Today there are more than 150,000 proud owners of the Figo in India. Our Chennai-made Figo is not only winning over customers here but generating great international demand and is being exported to 34 international markets. It will eventually go to 50 international markets.

Bt what's the blow like given slower growth in the country in general and the impact of high interest rates in the economy?

As an industry, last year was definitely a year in which a slowing global economy, coupled with rise in interest rates, and fuel prices resulted in a decline in consumer confidence and car sales. However Q1 has been positive and we have to see how this trends as we progress through the year.

This is an industry that has to develop and invest in an eco-system and there are challenges where we have to work with suppliers and dealer partners for capacities, efficiencies and talent.

What are the key business challenges for a business like yours?

The automobile industry represents the pulse of the nation and reflects the true potential of the country. India today stands firm as one of the leading automobile markets in the world. India is expected to be No. 3 auto market by 2020 after China and the US. Not only is the world bullish on its outlook for the Indian automotive industry, it also is predicting investment worth $30 billion to $40 billion along with 300,000-500,000 new jobs in the time to come.

At Ford, we also expect the automobile industry in India to grow to five million vehicles by 2015, and nine million by 2020.

What has golf taught you about doing business and about people?

A.Importance of keeping your eye on the critical factors, in this case, the ball. Don't let the rest of the environment distract you. Your objective is to get the ball in the hole! And most importantly, you got to enjoy the journey.

About people too, it teaches you about staying calm under pressure, evaluating risks and personal achievements. The ability to have fun under pressure. The collapse of others as self-inflicted pressure takes it toll.

When did you start golfing and who introduced you do the game?

My father introduced me to Golf. I started when I was 8 years old.

To date, what is your proudest golf accomplishment?

Winning the Annual Grudge match amongst top competing friends who play golf.

The Beamers, Mercs and Porsche’s are not able to meet Indian demand.
Premium car sales in the country grew 70%, or at more than double the rate of the industry's best expectation, in 2010 to 15,000 vehicles, throwing carmaker's supply chain out of gear.

The luxury street is jammed with people waiting to drive away marquees such as Porsche Cayenne, BMW X1, Audi A8 and Mercedes S500, because carmakers are trailing speeding demand by up to six months. Premium car sales in the country grew 70%, or at more than double the rate of the industry’s best expectation, in 2010 to 15,000 vehicles, throwing carmaker’s supply chain out of gear.

“While luxury carmakers stretched their best to meet the growth, demand far outstripped supply,” Mercedes Benz India sales and marketing director Debashish Mitra said. Manufacturers are ramping up capacity to keep pace with record demand, but customers booking popular luxury cars now may have to wait for three to four months for delivery, industry officials said.

Luxury cars are generally delivered within 4-6 weeks of their order. Globally too, factories of Audi, BMW and Mercedes are working at full capacity to keep pace with unprecedented demand. With an average waiting period of three to four months, carmakers fear that customers will switch to competitors.

Most luxury cars are imported in the completely knocked down form and then assembled in the country since overall volumes are still low. So the supply is limited and it takes longer to react when demand spurts. “From order to delivery it generally stretches between two to six months,” said Mitra, Mercedes. Also, most of these cars are highly customized, pushing delivery periods.

Sports car maker Porsche says that its cars are customized as per the buyer's specifications and hence the waiting time for its cars is comparatively more than other brands. “Many exclusive options like special colors, matching painted interior and initials of the owner embossed extend the delivery time for Porsche cars,” Porsche India director Ashish Chordia said.

Besides, its order book is growing faster than supplies. Out of the 379 bookings it received for the Cayenne SUV in 2010, Porsche has managed to deliver only 131 cars. And the waiting period has gone up to six months.

German luxury carmaker BMW has increased production by almost three-fold at its Chennai plant to 8,000 cars per year. Yet, it failed to check the long-waiting backlog for its largest selling 5Series sedan and the newly launched X1 its compact sports utility vehicle, which now takes 4-6 months to reach customers.


Source: ET/Auto India

Cars to look forward in 2011!

Hyundai Avante
Price - Rs 12 lakh
Hyundai Motor Co., plans to launch Hyundai Avante as a replacement for its discontinued model Hyundai Elantra. The Avante might be equipped with a 1.6 litre Gamma petrol engine and a diesel engine variant may follow. The 1.6 litre, DOHC, VVT, 4 cylinder, petrol engine is believed to pump out a top power of 118 bhp at 6200 rpm and churn out a peak torque of 156 Nm at 4200 rpm. The diesel variant of the car is reported to be loaded with a 1582cc, CRDi power-train that belts out a max power of 115 bhp at 4000 rpm and generates maximum torque of 260 nm at 1900 rpm.

Maruti Cervo
Price : Rs 1.5-2 lakh
India's largest auto manufacturer, Maruti, is planning to launch another small car model, Cervo, as an entry level segment in the Indian auto market. This is seen as Maruti's aggressive counter for the Tata Nano which has stormed the auto market with its ultra low cost. To reduce its manufacturing cost Maruti Suzuki may reduce some features from the original model which is available in Japan.

Chevrolet Camaro
Price : Rs 20-25 lakh
Leading Indian car manufacturer General Motors India is planning to present its fifth generation all-new luxury sports car in Indian auto market. The Camaro is expected to be powered by two types of engines - 3.6L V6 petrol engine and 6.2L V8 Engine carrying 5 trim level variants, LS, 1 LT, 2LT, 1SS & 2SS. The variants LS, 1LT, 2LT comes with 3.6L V6 engine while rest 1SS & 2SS are packed with 6.2 L V8 engine.

Chevrolet Sail
Price : Rs 5-7 lakh
General Motors to overcome the bad time and is going to launch the Chevrolet Sail in India. The concept car model, Chevrolet Sail, was displayed in Shanghai Auto Show in 2005. The company has informed that the car will be exported to other emerging markets as well.

Note: All prices are subjected to change.
Source: http://autos.in.msn.com

BMW – Top luxury car in India!

Germany's BMW has maintained its lead over rivals Mercedes-Benz and Audi to remain the top luxury car in India in 2010, with sales of 6,246 units. BMW India, which saw 73 per cent growth in sales during the year, enjoys over 40 per cent share of the luxury car market in the country, which is estimated at around 15,000 units per annum.

In terms of the sales growth rate, India was among the top three markets for BMW after China, which saw over 80 per cent growth. India and Korea followed it (China) at around the same level," BMW India president Andreas Schaaf told PTI.

 The total number of BMW cars sold in India in 2010 exceeded the company's target of 4,200 units. The year 2010 was an exceptional one for BMW in India and I am not sure if we can repeat it, but the market will continue to grow and we want to stay number one, as we do not want to give up that position.

This is the second consecutive year in which BMW has retained leadership position in the luxury car segment in India.

Source :Rediff business 

India -the second-fastest growing market for automobiles globally!

Five names in the automobile world are gearing up to enter India, the second-fastest growing market globally. Chrysler, Kia, Peugeot, Triumph and Scania are finalising their India blueprint. The reason is obvious. According to a report , India will beat China, North America and Europe to become the fastest growing automobile market.

1. France's largest car maker PSA Peugeot Citroen is learnt to have held talks with some state governments for land to set up a manufacturing plant in India. The company plans an entry through a 100 per cent India subsidiary.
2. US-based Chrysler, which suffered in the recent financial downturn and subsequently filed for bankruptcy protection, is keenly interested in getting its vehicles into India. About 20 per cent of Chrysler shares are owned by Italian auto giant Fiat, which has an industrial joint venture in India with Tata Motors.
3. Kia Motor, the Korean affiliate company of Hyundai Motor Company, whose India subsidiary is the second-largest car maker domestically, has shown interest in launching its small car and SUV range in India.
4. Sweden's heavy commercial vehicle maker Scania is also trying to make inroads into the country with its range of heavy-duty trucks and buses. The company is present in the long-haulage truck segment and in the intra-city and inter-city bus segment.
5. Spyker of 'Basic Instinct 2' fame is all set to enter here by the next year. The Netherlands-based Spyker Cars has already shortlisted potential partners to import its vehicles and two dealerships are expected to come in the national capital and Mumbai. Spyker has shortlisted the potential partners and we will announce the new retail partner when the arrangements are finalised.UK-based luxury car maker Aston Martin was also understood to be gearing up to launch its cars in India and tied up with Infinity Cars to open the first showroom in Mumbai.

The cars are likely to cost up to Rs 3 crore (Rs 30 million).

Source : Rediff business

Men will remain boys, only their toys get expensive…

The tradition of riding chariots dates back to pre-roman era as a pastime of the titled nobility. Nothing much has changed as Cars have become the Chariots of today’s affluent.

Evolution from then horse-drawn carriages to the modern car which have become ‘Concours d’Elegances’ literally meaning concourse of excellence.

The fastest and the most expensive street legal car is Bugatti Veyron which is a whopping $1700000, but standing true to its price this car is a masterpiece of engineering. It reaches 0-60 in 2.6 seconds and with a top speed of 253 miles+.

The next beauty in the block is Lamborghini Reventon, it’s fast and furious and clock 60 in just 3.3 sec with a top speed of 211 mph comes at a princely $1600000.

A dream car for many and true to its words ‘Spirit of Ecstasy’, the Rolls Royce Phantom. Backed by a rich heritage of owners which includes even the Queen of England, this car is a worthy solitaire in your fleet.

The only flip side with these expensive cars is high maintenance cost and low mile per gallon but who cares, I got the money!

So just go out and impress your friends with your mean machine.

Source - Multiple