Sunday, March 3, 2013

Fifteen years later, they just 'Figo'ed it out!

From a company that was normally counted as an interesting niche player in India, Ford has suddenly become the flavour of the season with the Figo. Our editorial team member walks through Ford one fine lazy afternoon and gives ‘the scoop’ by Sanchit Verma

The first time I laid my eyes on a red Ford Ikon way back when I was in 9th standard, I could not help but get fascinated with this well-engineered and crafted as well as well-marketed 'Josh machine'; the rage of the youth in those days. As a brand, Ford had captured the imagination of my peer group as the ultimate in sports cars, thanks to our myriad exposures with, and obsession for the American way of life.

It seems like the rush of old days once again when I step into Ford’s manufacturing plant near Chennai, south of India. My ostensibly honest objective is to understand the strategic intent behind Ford’s latest moves; dishonestly, of course, I intend getting ‘the scoop’, whatever it means in the automobile industry. The Ford plant is basically located at a classically named Maraimalai Nagar – 45 km from Chennai. The huge 350-acre plant pumps in the much-needed adrenaline rush as it gives an overall feel of the Ford campus. A company official chaperoning me tells me about their initiatives to maintain an environment friendly plant. As he shows me the way towards the heart of the plant where Ford's latest sensation (Figo) takes birth, he gives me a pair of glasses and a metal cover as I prepare myself for the unique Ford experience. But more of that later.

Ford India unveiled their plans to expand their plant capacity to 200,000 cars per year and a launch of small car in 2008. The current Ford plant has a capacity to manufacture 250,000 engines and is based on a flexible line, thanks to the $500 million investment made by Ford Motor Company into the Indian market. In fact, hard market figures for Ford in India aren't exactly 'Ikon'ic, even after 15 years since it re-entered the market with Mahindra & Mahindra (M&M). In the mid-size segment, which has been its main focus area until recently, Ford is at fifth position as per sales for April-June 2010, with sales of just 3,610 units (a drop of 33.4% yoy, figures from SIAM). Even in the B1 segment of Utility Vehicles, the highly up-market Ford Endeavour fights a lone battle for the company, which lags behind M&M, Toyota, Tata Motors and GM in terms of cumulative market share. So far, Ford has been visibly playing the premium segment game, which changed only this year in March, when it launched the Ford Figo. During the launch, Mulally had exclaimed: "We are confident the Ford Figo will be a product that Indian consumers really want and value.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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