Policy uncertainties and a tough business environment will not slow us down, says Ford India’s new President and Managing Director Joginder Singh.
With Ford stepping up investments in India to $2 billion (for expanding operations at its Chennai plant and on its new plant in Sanand, Gujarat), “our India plans are on track,” said Singh, who is taking over from Michael Boneham.
“Despite policy uncertainties (the move to raise taxes on diesel vehicles) and the hiatus now and then, we believe in the India growth story in the longer term. Per capita GDP and other economic indicators are still good. We need to be patient,” Singh told reporters.
The Asia-Pacific region’s contribution to Ford’s sales is small. “But in the next decade, we see it accounting for 70 per cent, majority coming from China and India,” said Singh.
But the current concern is high interest rates, which continue to impact business, said Boneham, who is retiring in December. “While the festival season lifted volumes and market share, we must wait and see if it is sustainable.”
Ford expects volumes to touch one lakh units (domestic) and 25,000 units (exports) this year.
Immediate task on hand
Singh, who headed Ford Business Services Centre in India for over four years, has also had stints across Europe, the US and Canada. His immediate task in the new role is to drive Ecosport into the Indian market next year. Singh believes the mini-urban SUV, which has already been launched in Brazil and China, will “more than repeat the success” of its small car Figo.
Ford India was established in 1995. Since then, it has launched just a handful of products – Escort, Ikon, Figo and Fiesta. “We will march on from Ecosport,” said Singh, reiterating the promise of eight new products by mid-decade. The Chennai and Sanand plant will together have a total capacity of 4.4 lakh units. “As new models come in, we will have the opportunity to fully utilise this capacity,” said Boneham, who is looking forward to spending time with family in Australia at his home close to Sydney’s Bondi beach.