Tata: Watch Your Back, Ford Is Getting More Aggressive in Your Backyard!

[Guest ValueCarl]

http://www.bbc.co.uk/news/business-14321190

 

The US carmaker says it plans to invest $1bn (£612m) in building a new factory in the western state of Gujarat, its second production line in India.

 

The announcement comes as Ford is looking to increase its global sales by 50% over the next four years.

 

India is one of the fastest-growing car markets in the world.

 

"These new state-of-the-art facilities will help us reach the goal of increasing worldwide sales by nearly 50% by mid-decade to about 8 million vehicles per year," said Michael Boneham, president and managing director of Ford India.

[rohitc99]

its maruti suzuki which is likely to get hurt more. the company has around 50% market share and grew sales in excess of 20% last. their margins however dropped due rising competiton/  raw material cost

 

i worry more about the roads ...where will everyone drive these cars ? the road network is expanding in low single digits at best

[seshnath]

http://www.bbc.co.uk/news/business-14321190

 

The US carmaker says it plans to invest $1bn (£612m) in building a new factory in the western state of Gujarat, its second production line in India.

 

The announcement comes as Ford is looking to increase its global sales by 50% over the next four years.

 

India is one of the fastest-growing car markets in the world.

 

"These new state-of-the-art facilities will help us reach the goal of increasing worldwide sales by nearly 50% by mid-decade to about 8 million vehicles per year," said Michael Boneham, president and managing director of Ford India.

 

Carl - Ford may be "focus"ing on the passenger vehicle market.  It is not really a threat to Tata Motors.  TM has majority share in commercial vehicle market (2/3rd) and much smaller in Passenger vehicle (13% in 10-11).  Maruti has about 3 times that market share in PV.

 

Ford was one of the first movers in the market with Ford Ikon back in 99.  Initially, it was one of the best selling luxury (!!!) cars - most businessmen had to have it, just for the brand name and novelty.  (I used to work with Ford Kotak, the financier, as a consultant back then).  After watching the market for the last few years, my observation is that it is hard to make a big dent in the market for Ford.  Suzuki (through Maruti and otherwise) with Tata has firm grip on the mass market due to mileage, durability and cost factors, which is where the volume is.  And the key factor in this segment is coverage of service centers.  Suzuki and Tatas are way ahead.  The cost will be too high for Ford to replicate that network in the current circumstances.