The EcoSport has been a major contributor to Ford sales in India. To strengthen its footing in the Indian market, the American automaker had introduced the Figo hatchback and the Aspire sedan. Initially, the new models did evoke positive response from buyers, but down the line they failed to hold customer interest for long.
Ford India had targeted an average 20,000 units production for the Figo and the Aspire models, which has now been reduced to an average of 10,800 units. Owing to poor sales, even though the production has been cut by half, the average combined production is at 6,500 units a month. Ford’s facility in Gujarat has also been under pressure to begin exports to Europe early this year, but it has been delayed for unknown reasons. For now, the plant exports to Middle East, South Africa and Mexico. The Figo hatchback bas been facing strong competition in its segment due to popular sellers like the Grand i10, Maruti Swift and the Tata Bolt. The Aspire on the other hand, faced stiff competition from the Maruti Dzire and the Honda Amaze in India.
A Ford spokesperson stated, “The Indian automotive industry has been experiencing a weak consumer demand. Despite sustained levels of discounting, the B-segment, where the majority of automotive sales reside, has been flat in the first quarter.” From October 2015 to March 2016, the Figo witnessed 60 per cent drop in sales, while the Aspire witnessed a 74 per cent drop from August 2015 to March 2016. The multi-product strategy for the brand has clearly not been working in their favour.
With the launch of Maruti Vitara Brezza in India, Ford’s popular seller EcoSport sales will be affected. To tackle this, the American automaker has offered a price cut of Rs 1.12 lakh on the EcoSport effectively from March 2016.
Source: CNBC-TV18
