Ford

Ford's been in India since the 1990s, but it has yet to take up the position it holds in its main markets, Europe and the US — that of a mainstream carmaker that has entry-level cars on offer. Yes, Ford India has its hands full right now with its blockbuster, the EcoSport, but the company still has its eye on the bottom of the pyramid. 

 

Recently appointed Ford India president Nigel Harris said, “We are always looking at and studying the market for a more affordable car. It must have the right business equation and it must have the Ford DNA. Fords are safe, comfortable to drive and well connected, and this car should be all of these things.”   

Ford could go one of two ways. It could update an existing platform or car for the Indian market like it has done with the Figo, or it could leverage economies of scale on a current platform. Ford currently seems to be leaning in the direction of the latter. In future, Ford will have four cars in India built on the same platform — the EcoSport, the new Fiesta sedan, the upcoming Figo compact sedan, and the subsequent next-gen Figo hatchback, and this could give the company the desired economy of scale for a fourth and fifth car. 

Direct competition for the Maruti Celerio could be on the cards soon, in the form of a new hatchback that will sit below the Figo. This will allow Ford to more successfully tap into a lucrative segment of the market that the current gen Figo plays a small role in, allowing the next-gen Figo to be a more upmarket premium hatchback.

The other car is a seven-seat compact MPV to take on the likes of Honda’s upcoming Mobilio and the Maruti Ertiga. Known by its internal codename B516, this MPV will also share the same platform as the EcoSport and Fiesta, and will be related in some aspects to the B-Max five-seater MPV sold in European markets, although with costs likely reduced for emerging markets such as ours.

The key, of course, is greater localisation and a lower cost base, and Ford has been doing this intensively over the past few years. What will also help Ford meet its cost targets is the fact that India is now an export hub for this platform that Ford calls B2E, and that is sure to give them greater leverage. Strong local demand, good export numbers and affordable components; Ford could have all of these and the right 'business equation' soon.