Ford Motor Co. (NYSE: F) plans to introduce eight new vehicles in India during the next five years in order to take advantage of increasing demand for its cars in the country. Company executives announced on Thursday that the Dearborn-based automaker plans to introduce the Figo small car from India to 50 new markets, including Mexico, North Africa and the Middle East.
The company’s renewed move into India is part of an ongoing strategy to boost its presence in emerging markets such as China and Brazil to insulate it from slowing growth in Europe and the United States.
“By the middle of this decade, we will introduce eight new vehicles to India from our global platforms, in segments appropriate for this market,” said Joe Hinrichs, president of Ford Asia Pacific and Africa said in a speech during the annual conference of the Society of Indian Automobile Manufacturers.
Hinrich said that automotive industry sales in Africa and the Asia Pacific will more than double to 35 million vehicles by 2018, up from 16 million units in 2009. The region is expected to make up 70% of Ford Motor’s growth during the next decade, he added. He added that vehicle sales in India have grown at an average annual rate of 17% during the last half-decade and it’s expected that 10 million people will move from scooters and motorcycles to small cars during the next several years.
Hinrich said that Ford’s plan to introduce eight new models during the next five years will have a significant impact on its manufacturing operations, supply chain, dealerships and employees in India.
“Expanding capacity creates particular challenges for suppliers—who are responsible for a large part of a vehicle—and requires new approaches,” he said. “In India and in the rest of the world we are simplifying the way we work with suppliers by reducing complexity and expanding part commonality.”
Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries also engage in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa and Volvo. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services. In August 2010, the Company completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group Co.
Shares of Ford Motor Co. (NYSE: F) traded up 1.06% hitting $11.45 during mid-day trading on Thursday.
