HomeCar NewsFord India Dealers Using Showroom To Display XUV700, Maruti Cars

Ford India Dealers Using Showroom To Display XUV700, Maruti Cars

Ford dealers showroom Mahindra XUV700
Image – Ashu

Ford India had earlier stated that it is expecting a small reduction in the number of dealers

Ford’s decision to stop production for domestic market has created significant challenges for its dealers. These businesses are facing an uncertain future, as sales of new Ford cars will be limited till stocks last. Even these will be difficult to sell, as customers are not sure about getting desired after-sales service and spare parts.

Converting to other brand dealership?

Even though Ford may have chalked out a restructuring plan, not every dealer may be willing to switch to mere service and parts business. As per data provided by FADA, there are around 170 Ford dealers. Several of these are quite new and have invested several crores to setup their dealership business.

Switching to a service and parts business may not be profitable enough to achieve targeted return on investment. Staff working in sales and related departments may also lose their jobs. Based on recent images and videos, it appears that some Ford dealers may be shifting entirely to other brand dealerships.

In one of the images, Assam-based Chakrapani Ford dealership can be seen displaying Maruti Suzuki cars such as Dzire, Alto and Baleno. A similar phenomenon has been captured on video, wherein a Ford dealership has displayed Toyota Fortuner inside their premises. The location of this dealership has not been revealed.

Ford dealers showroom Maruti cars
Image – Raj Kamal

Another instance in Lucknow showed XUV700 SUVs using Ford dealership for local display. Most likely scenario is that most of these Ford dealers, who are allowing display of other brand cars inside the Ford showroom, are also the owners of dealerships from other brands.

Another reason could be that these dealerships have signed a pact with other car manufacturers. It could also be a dealer-level decision, as there are several entities that own and operate multiple car dealerships. These dealerships could officially announce their shift to other brand when there’s more clarity on the evolving situation.

Ford restructuring plans

Ford has assured that its customers will continue to get the same level of services as earlier. Dealers will be adequately compensated to reposition their businesses as service and spare parts providers. Ford had also said that they are not exactly exiting India, but changing strategy to focus on premium car segment. The company believes that this strategy will ensure a sustainable, profitable business.

Ford has plans to launch cars like Mustang coupe, Mustang Mach-E electric and others in India, which will be imported via CBU route. Some percentage of existing dealers could be on-boarded to sell these premium cars.

According to FADA, investments worth Rs 2,000 crore are at stake with Ford’s decision to stop domestic production. Job losses at Ford dealerships are estimated at around 40,000. From dealer perspective, this could be the most serious financial setback in Indian automotive space. The other major exit was that of General Motors. It had impacted 142 dealers, 15,000 jobs and Rs 65 crore worth of investments.

FADA has requested the government to create special laws to protect the interest of automobile dealers. This has become even more important now, as an increasing number of global auto companies are launching operations in India.

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