Ford’s India strategy is on the right track despite a slowing economy, said country chief Michael Boneham, who added that transparency in policy and positive consumer sentiment will go a long way in boosting the industry.
A report by The Hindu newspaper said Ford had decided to make a mark in the small car segment with high levels of localisation in addition to maintaining its domestic and export strategy for vehicles and engines.
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Boneham told the newspaper: “The decision to enter the small car category is mainly because we see a vast majority of people who are graduating from two-wheelers to four-wheelers as a result of GDP and purchasing power parity improvements. A lot of our future launches will be in this segment. This is also the area where 70% of all cars are sold and we don’t expect this mix to change in the future.’’
He added: “Our export strategy will provide a nice hedge for us and allow us to respond flexibly to global conditions. What we really need, however, at this point is transparency in policy. We can’t have sudden taxes on diesel cars; it would become a major issue for us.
“Secondly, consumers have to get over their negative mindset which has become like a wall of worry due to rising inflation. If we see Europe pick up, it will help India and other countries.”
