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US auto major Ford Motor Company has said that it is betting big on the Asia-Pacific markets, especially China and India. The company has said that 40% of company's global sales will be contributed by the Asia-Pacific region in the next 4-5 years.
Ford Motor's Chief Executive Alan Mulally, who was in Chennai to witness rolling off the production line for Ford EcoSports at its existing facility near Chennai, said this region is important for Ford and strategies are in place to tap the domestic market and to use the region as a sourcing hub.
The company is betting big on the 'B’ or compact car platform/chassis and also hopes to generate higher sales volume from the Region in few years time from the current levels. “In the next 4-5 years, sales (number of cars) from Asia Pacific will be around 40% from the current 19%,” said Mulally. He noted, this region is the largest growing region in the World.
He noted the company is investing in seven plants in this region of which five are in China and two are in India (including engine facility at the existing car facility near Chennai and a new greenfield facility at Gujarat).
According to Joginder Singh, president and managing director, Ford India the company has doubled its investment in India to $2 billion from $1 billion, till 2011 and production capability also doubled in India, which is a major market for it to grow as well as ship out more cars to other markets even as it is bringing down production in line with the demand in Europe, said Mulally.
“Ford will be exporting Figo and EcoSport models out of India. The Indian plants will support the market here and also other global markets,” said Mulally, one of the key advantages of India is competitiveness and free trade. He noted the company exports Figo model to around 38 countries.
Speaking about the EcoSport, Mulally said, it will be a small SUV on B Platform, which is one of the fastest growing segments in the country. The product is an all-new urban compact SUV, based on company's B-platform, which also underpins its Fiesta. The company will produce two million vehicles annually on its B-platform by 2015 globally.
India is one of the third of the five plants globally where EcoSport will be produced. Ford has invested around $142 million at its plant near here to roll out EcoSport. Currently Ford rolls out EcoSport at its plants in Camacari, Brazil and Chongoing in China. Production will also start subsequently at Rayong, Thailand and Tatarstan, Russia.
The production line in Chennai is now capable of producing six different car bodies on one line and ten variants of EcoSport.
He said there is huge opportunity in the B – platform where different kinds of body panels or “hats” can be put on.
Questioned about the company losing out to the competition that is bringing out new models every three months Mulally said Ford is focusing on the B-segment and there will be more models for this segment.
Queried about the company to lose around $2 million in Europe this year and whether would be closing down any its European plants and ship out cars out of India Mulally said the European market is under stress now and the leadership in European countries is dealing with the economic fall and some are of the view that it has bottomed out. He said Ford Motor Company is rejigging its European operations and also bringing down it production levels to match the demand there.
According to Mulally, Ford Motor Company still supplies engines to Tata Motors’ Jaguar and Landrover models. The Indian company acquired the two models from Ford some years back.
