It all began with a dream…to enable everybody in the world to become a car owner. A dream that drove a sixteen-year-old boy grow up, to become one of the most successful entrepreneurs in the world. A dream that gave us one of the world’s leading automotive conglomerate…a dream that gave us Henry Ford…a dream that gave us the Ford Motor Company!
What began as a tiny operation in 1903 in a converted Detroit wagon shop, with 10 people and$28, 000 in cash, has tremendously shaped up into an automotive knight in shining armour of today. The Ford Motor Company(FMC) is a unique success story spread across 34 countries, with a network of over 7000 dealers within seven years of its inception.
Henry Ford began this bon voyage with a simple idea, “Think Global, Act local.” And this man’s ingenious legacy has grown into the single largest automobile brand in the world. Today, the FMC is nearly a 100-year old experienced organisation with over 360, 000 dedicated employees in over 200 countries, including India.
’We are accustomed to say, out of long observation and experience, that it is not prosperity that makes the automobile, so much as it is the automobile that makes
prosperity. It gives a momentum and diversity to the people’s activity which tends constantly to increase and is most difficult to stop.’
Ford India Limited
When Ford decided to enter the Indian market, it was not just for expansion. It was to introduce in India, cars with international appeal and designed to offer quality technology and value-for-money vehicles that were specially engineered to suit to Indian conditions and simultaneously make India a global player in automobiles. Ford entered the Indian market in November 1995 through a joint venture with Mahindra & Mahindra(M&M). And since then, Ford has brought to India the bourgeoisie Ford Esc*rt, the racy Ford Ikon and the stately Ford Mondeo. With steady market domination and changes in market share, the company was rechristened Ford India Limited(FIL) in February 1999.
Interestingly, when Ford unveiled its maiden Indian offering, the Ford Escrt, auto pundits were flummoxed. FMC had a great variety in brand portfolio, then why only the Escrt? But the mystery unravelled within days. The American conglomerate had chosen his battle shrewdly picking the most challenging spot in the Indian Automotive sector, the mid-size vehicle segment. Even with acute market penetration from other offerings, FIL hardly had any competition. Their sedans were manufactured with world-class standards at the same time keeping in mind the special needs of the Indian consumer. The rest they say is Indian history on American wheels.
Ford then geared up for its second phase in the mid-size car segment in Indian. With a whooping investment of Rs. 1700 crores, FIL unveiled its Headquarters and modern integrated manufacturing facility at Maraimalai Nagar, near Chennai. This establishment spread across 350 acres employs over 800 highly skilled personnel trained at Ford facilities, both in India and abroad and manufactures the Ford IKON. Today the IKON enjoys the status of being the best brand in the country.
A closer look at FIL’s success strategy:
As referred within company circles, Ford is a 6-Sigma company wherein every step of every process is planned to perfection. Not even the smallest concern gets past the Quality Control Team. To be doubly sure, routine calls are made to dealerships to check the quality of cars delivered to them. At M&M’s dealerships are present trained professionals who provide the best levels of service in India. Its intensive manpower training, advanced service equipment and dedicated consumer satisfaction are the plus points that are being followed by the entire industry.
Ford’s Indian Game plan:
Using more domestically made parts, FIL is all set to introduce more models sooner and gain superior profits by 2004. According to David Friedman, MD, FIL, localisation is their key word, as it will allow them to offer lower prices and boost the volume of sales in a price-sensitive market. Ford makes five variants of the mid-sized Ikon sedan in India. It also sells the Mondeo luxury sedan, but imports these from its Belgian plant.
Ford’s future plans:
At the Auto Expo 2002 - New Delhi, FIL unveiled a wide range of exciting cars at the ‘Ford No Boundaries’ pavilion that provided an invigorating experience of unleashing the power of imagination with fun to drive and stylish products on display. The cars on display included leading vehicles from various segments, such as the Ford Escape - currently the most successful light-duty sport utility vehicle in the overseas market; to the versatile Ford Ranger Splash, one of the safest and toughest pick-trucks on the road. Concept cars on display included the futuristic Ford IKON Cross Trac styled by world-renowned auto stylist Dilip Chhabria and the sporty racing car that accentuates the versatility of the Ford IKON with a reinforced body structure.
The Scenario Ahead:
Overall new car sales in India inched up a mere 0.5 per cent in the 2001-2002. But forecasts call for 10 per cent annual sales growth over the next decade in one of the world’s fastest growing economies. India’s car market has attracted lots of global automakers since it was opened up in 1993. General Motors, Fiat, Hyundai, Daewoo and Honda all make cars in India now, improving consumer choice but intensifying competition in the 600, 000 vehicle a year market. Any guesses as to who’s getting the Lion’s share?!