Ford, the American automotive behemoth has no plans to introduce new models in Indian markets till 2020. This lapse is attributed to many reasons but the root cause is that Ford need to upgrade its vehicles according to Bharat Stage 6 [BS6] norms. The BS6 norms will come into effect from April, 2020 and this norm is stricter than the present BS4 norms. As per the BS6 norms, the cars especially the diesel engine powered ones are needed to get equipped with expensive emission control devices.
Ford India has 20 years of experience in the Indian auto markets and currently EcoSport is its best selling product. The Escort, Icon, Fiesta, Figo were all launched previously by the company but presently there is no volume turner expect the EcoSport. The company’s main profit comes from export. The American company had decided to slow down hiring on all departments expect engineering and technology and is thus takes aggressive cost-cutting measures to improve profit. The company has even decided to scrap the October increment of their employees, earlier they had given two increments in March and in October. The company has even shifted their corporate office to further reduce costs.
Ford will now completely depend upon the facelifts of the current model line up in order to keep the band wagon running. Last year Ford entered into a joint venture with Mahindra and Mahindra looking forward to profiting from each other strengths. Therefore, the new launches after April 2020 will be not be developed by the Ford, rather those manufacturer will the result of the company’s joint venture with Mahindra and Mahindra. Ford has reduced its platforms from 9 to 5 globally as a part of the company’s strategy to be competitive in the emerging high volume markets of India and china. The blue oval – badged company is highly dependent on its joint venture in order to manufacture more versatile cars to meet up the demand of the market.
Mahindra and Ford are working together to develop a SUV based on the next generation XUV500 [W601]. Some reports claim that both the companies could jointly develop electric vehicles as well. However, the first launch of the joint venture of the two auto makers will not be before April, 2020 and will be positioned between EcoSport and Endeavour.
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