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Ford cars to get more local

Once the cars are manufactured locally, Ford can focus on speccing the models according to the demands of the Indian customer.
2 min read8 Nov '16
Staff WriterStaff Writer
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Ford may have not achieved the numbers it expected to do with the Figo and Figo Aspire, but that doesn't seem to have deterred the American car giant. Proof of that is clearly visible, especially with Ford announcing a Rs 1300 crore investment in the Global Technology and Business Centre in Chennai. Though much of the investment is directed at global markets and has to do with the relative affordability and capability of Indian engineers, what this new centre will also do is help 'localise' Ford's India models further. The American company has realised that to be competitive here, in India, it needs to build more and more of the car here.

The benefit is likely to be twofold. To begin with, India-specific models in the future can be altered significantly, without an increase in price. And once more of the car is manufactured here and the prices come down, Ford can concentrate on speccing the car more generously and delivering the wide feature list Indian customers demand.

To help this come to light, Ford is building its own test track and will have its own local testing and validation team. And this time around, it won't just work with component makers; it wants to go all the way down to Tier II and even Tier III suppliers to keep a closer watch on both quality and costs. The total reduction target for each car is expected to be in the region of a USD 1,000 ( approximately Rs 70,000 ), and that, Ford says, will be enough to bridge the gap between a well- specified car and one that isn't. That, of course, is likely to make all the difference. What this will also mean is a divergence from the 'One Ford' parts sourcing plan. Fords with better specified interiors and wider feature range are coming up soon. 

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