Ford India to focus on margins not volumes, says MD Anurag Mehrotra

Anurag Mehrotra talks about his focus on ensuring a sustainable and profitable business

Anurag Mehrotra, 44, took charge as the youngest managing director of Ford India (effective today) after spending over six years in the sales, service and marketing functions. He is also the first Indian to head Ford’s subsidiary here after many years. Mehrotra talks about his focus on ensuring a sustainable and profitable business while not chasing volumes at the cost of margins in an interaction with Ajay Modi.  

Q) Do you see more and more automobile majors opting for an Indian to lead the operations in this complex market?

A) It doesn’t matter if there is an Indian or expat leading the business. The key thing is the sensibility that you pick up and the pace at which you do it. We have had expat MDs who have done a tremendous job. It is a function of the market understanding, how willing you are to listen to the local teams and take the right decisions. It is unfair to say that an expat cannot do the job.

Q) What will be your priorities as you take the Ford India journey further?

A) The vision is to build a profitable and sustainable business in India. We have identified four strategic pillars as a part of our Growth 2.0 strategy: strong brand, right products, competitive cost and effective scale. The Ford brand has improved but we are working to dispel perception on cost of ownership. If the market has a perception that cost of maintaining a Ford is high, our ability to charge right price gets compromised. We have a strong product portfolio ranging from the Figo to the Mustang and you will see more action there. We have made service cost transparent by putting it on our web site. All our parts’ prices have been put online. The dealer will honour this price. The only way you can earn the trust through transparency and attentiveness. The effective scale of production is being achieved through a mix of domestic and export sales.

Q) Ford is exporting much more than it is selling in the domestic market. Is that a worry?

A) It doesn’t worry me at all. My vision is to build a trusted and profitable business in India. Volume mix will be a function of response you get from individual markets. Earlier, domestic was a large per cent of our portfolio. A well-balanced export and domestic market amount to a fabulous hedging strategy.

Q) Ford is now the second biggest exporter from India? What is driving export demand? How does Ford India product compete with your overseas plants?

A) The product quality has been well received. The quality of the product and the price at which it comes, both these factors are making a compelling case for exports out of India. Customers in markets like Europe are very discerning and we have been able to meet expectations. You will see export volume rising further.

Q) Ford invested in shared mobility platform Zoomcar in India. Why is this space important?

A) We are very excited about shared mobility since it is at least three-five times bigger than automobile industry. Anyone serious about automobiles should and will have a play in the mobility space. Each company will have its own way of doing this. We have run experiments in this segment here and put money in Zoomcar. Our intent is to be an automotive and a mobility company.

Q) How critical is the cab aggregator segment for Ford?

A) It is an important category. We have consciously worked with the Ola, Uber and Meru. We partner with them to offer complete solutions on vehicles like Figo and Aspire. This business has grown 300 per cent in last twelve months for us.

Q) When will we see action from Ford in the hybrid/electric space here?

A) We are closely watching this space. A lot of clarity needs to come from the government. We have a strong presence in these outside India but will wait for more direction in India. Globally, this segment is driven by regulations and incentives.

Q)Ford has grown more than the industry in recent months but on a small base. What are your plans to grow the volume?

A) I am happy to see a 2-25 per cent growth when industry is growing at 7-10 per cent. It shows that you are gaining share. We must grow even faster. But you don’t chase volumes for the sake of it. The growth in volume has to be backed by returns. I can gain market share tomorrow by throwing enough money on the table. But that doesn’t make sense. There are some companies who are doing a terrific and profitable job here.