Wednesday, September 07, 2011
By Pranjal Gera
Ford India terms ongoing slowdown in sales a short-term event
The US based leading car maker Ford Motors has termed the ongoing slowdown in the Indian automobile industry as cyclical. In a recent statement given to business standard, Ford President and Managing Director Michael Boneham said that the auto industry’s growth rate has slowed and things have been made difficult by the high Interest rates and fuel prices. He added that the company believes that it is a short-term event and cyclical. The firm hopes that the low growth momentum will over soon and industry will keep growing at a good pace.
Meanwhile, going in line with its expansion plans in the country, Ford India is all set to establish a new manufacturing plant in India. According to the firm, India will be a nine-million-vehicles-per-annum market by year 2020.
The company currently has a manufacturing unit in Chennai where it produces a range of its cars including a hatchback Ford Figo, entry level sedan Ford Fiesta and luxury sports utility vehicle Ford Endeavour. The company also exports its cars to the markets like Mexico, North Africa, Asean nations, parts of West Asia and South Africa.
In the month of August 2011, the company managed to sell a total of 8,914 units of its cars in the Indian market as compared to 8,172 units sold in the same month last year, accounting a sales surge of 9 percent.
However, exports remain the major contributor in this growth as sales of the company in the domestic market dipped by 8 percent, as per the data released by the Society of Indian Automobile Manufacturers.