Ford India Hikes Prices of Its Cars Across Range By Up To 3 Percent
Like many other car makers in India, Ford has also gone ahead and increased the prices of its car offerings in the country across its entire product portfolio. Ford India has increased its car prices between 1 to 3 percent which has already come to effect in July, 2018.
While speaking on this development to the media, Ford official Anurag Mehrotra said that the company has indeed increased the prices of all its car models between 1 to 3%. While explaining the factors that compelled Ford to hike the prices of its products, he said that one of the factors is the high input costs and the other is the dipping exchange rate, which have affected of company and forced it to hike its product prices. As a way to nullify the effect of these factors, Ford is planning to increase the localization of its products.
He added by giving example of the Ford products and how they have increased localization now. He said that we have witnessed the first generation Ford Figo hatchback model, which had 60 percent localization level when it first arrived in the Indian car market. Now, the Figo hatch comes with around 85 percent localization, and the next generation models will come with even higher localization levels in order to offer more affordability.
Although Ford India’s sales is not as significant as that of the top selling car makers in the Indian market, Ford has quite a few hit products such as the EcoSport subcompact SUV and the Endeavour 7-seater premium SUV. Ford is banking big on increasing localization levels as well as planning to launch a slew of new model launches in order to boost its sales in the vast Indian auto market.
Late in 2017 Ford launched the updated new Ecosport, and this year, the American auto major has launched the all-new Freestyle compact crossover model. The company has also recently announced that it has crossed the huge sales milestone of 1 million vehicles, ever since it first began its operations in India back in 1998. Thus the company has also completed two decades of operations in India. Going ahead the American auto major expects to witness better sales growth owing to new model launches.
The company also said that hike in the product prices is quite an expected one, due to the fluctuating exchange rates, as well as the prices of input materials such as steel, aluminium, etc, which have witnessed price hike recently. The company can bear the increased costs up to a certain level, but beyond that it has to pass on the price difference to the consumers.
Mehrotra mentioned that thankfully the hike in the car prices has not affected the footfalls for the company. He added by saying that the company is relieved as the price hike hasn’t impacted in terms of numbers and the number of inquiries and footfalls in its showrooms continue to be strong, even though there’s negligible discounts offered in market.
Both of Ford India plants - Chennai and Sanand facilities continue to operate at their 95 percent production capacity, and Ford India is keeping a keen eye on the market demands which are certain to grow in the near future.
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