Ford becomes India’s largest car exporter for Dec 2016
Ford India has seen a surge in exports during December 2016 when a total of 17,904 units were shipped out of the country. This is a 262% increase in YoY exports when in December 2015, 4,941 units were exported. During the past calendar year, Ford India exports amounted to 1,51,638 units, while taking total exports in the past month into account, and the company has even beaten Hyundai Motor India to become the largest exporter of cars from the country.
Hyundai Motor India, who has been the leader in passenger vehicle exports, noted a significant dip in exports in December 2016, by 23.19%. Exports in the past month stood at 17,107 units in as compared to 22,273 units exported in December 2015. Hyundai Motor India exports the i10, i20, Grand i10, Xcent and Getz.
Ford India exports its models to 50 countries across the globe that also includes parts of ASEAN, Europe, Middle-East and Africa. The company also commenced exports to European markets in mid 2016 with the Ford KA+. Ford India exports also include the Figo, Figo Aspire and Endeavor and EcoSport all of which have received good response in international markets.
Ford India has invested heavily into its facilities in India. In 2015, the company invested $1 billion in the Sanand Plant. This plant, which has annual capacity of 2.4 lakh units and 2.7 lakh engines is spread over 460 acres and offers employment to over 2,500 workers.
Ford India is on course to become the global export hub for small cars, compact sedans, and mini crossovers. Speaking to Economic Times, Nigel Harris, president and MD of Indian subsidiary, confirmed that these export models would be global B platform vehicles. The aim is to export roughly half of Indian produce by 2020.
The company plans to have a total production capacity of 4.4 lakh vehicles annually by the turn of decade out of which 2.2 lakh units would be shipped to markets like Europe, Latin America, Africa, Middle East, Asia-Pacific. Ford EcoSport, one of the first global B platform models, is already being exported to several international markets and the soon-to-be-launched Figo Aspire compact sedan and Figo hatchback will also eventually foray into numerous markets.
Mr. Harris says that an export strategy would result in economies of scale which would help the company achieve certain cost targets. Thus, the firm will not only increase its quantum of business but will also be able to price products competitively in the domestic market. Over the last few years, Ford India exports have been steadily growing at an impressive rate. Ford India aims to export 2 lakh cars from India by 2020.