Ford India Private Limited

Ford India Private Limited is a subsidiary of Ford Motor Company for its operations in India. Since October 2019, it is transformed into a joint venture between Ford (49%) and Mahindra (51%).[3] Ford India Private Limited's headquarter is located in Sholinganallur, Chennai, Tamil Nadu.

Ford India Private Limited
Subsidiary
IndustryAutomotive
FoundedOctober 1995 (as Mahindra Ford India Limited)[1]
HeadquartersSholinganallur, Chennai, Tamil Nadu[2]
ProductsAutomobiles
Number of employees
10,000
ParentFord Motor Company (49%)
Mahindra (51%)
Websiteindia.ford.com

History

Ford India Private Limited began production in 1926 as a subsidiary of the Ford Motor Company of Canada, but was shut down in 1954 as the company was in loss. Ford re-entered the market in October 1995 as Mahindra Ford India Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra Limited. Ford increased its interest to 72% in March 1998 and renamed the company Ford India Private Limited.[4] The total investments made by Ford Motor Company since it set shop in 1995 stands at $2 billion as of April 2012.[5]

Ford launched several models in India, including the sixth generation European Ford Escort and the Ford Ikon, later followed by the Ford Mondeo (second generation). The Ford Ikon was a successful model, but Escort and Mondeo couldn't do much well in the market. Escort was a bit too pricey for what it offered while Mondeo couldn't survive the Asian competitors like Honda Accord and Hyundai Sonata.. In late 2004 Ford launched the European Ford Fusion[6], which brought a totally new segment to India - the crossover which the company called as an Urban Activity Vehicle & marketed in India as The-No-Nonsense-Car; going by its name, it was a very practical car way ahead of its time, and was popular mostly among enthusiasts.

Ford launched the Ford Fiesta in its sedan guise which was widely received in the market and was a sales success. Ford also launched the Ford Figo, based on the sixth generation Ford Fiesta hatchback in the Indian market.

Ford was one of the first companies to exploit government's sub 4 metre policy to develop an SUV for Indian market named Ford EcoSport which is again a successful model for Ford in Indian market. Ford also exports the EcoSport from India to EU and US markets. Ford then launched the second generation Ford Figo, first in its sedan guise as the Ford Figo Aspire, which now remains Ford's only sedan in the Indian market after discontinuation of the sixth generation Ford Fiesta. The Figo hatchback was launched at a later date. To fill the gap between the Ford Figo and Ford EcoSport, the company launched the Ford Freestyle, in 2018 which is essentially a crossover version of the face-lifted Ford Figo hatchback. It is a quite successful model, it came with class leading safety features and eventually won Gaadify car of the year award 2018.

Manufacturing facilities

Ford Figo
Ford Figo Aspire
Ford EcoSport
Ford Endeavour

FIPL's main manufacturing plant located in Maraimalai Nagar, 45 km from Chennai has a capacity to produce 150,000 cars on a two-shift basis and 200,000 with three shifts. In 2010-11, the company's yearly production crossed the 100,000 mark.[7]

As its new hatchback Figo was launched in March 2010,[8] Ford Motor Company has invested $500 million to double capacity of the plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines annually.[9][10] The engine plant opened for operations in January 2010.[11]

To meet the growing domestic demand and with an eye on engine exports, the company has invested $72 million to raise engine production capacity to 330,000 units.[12]

The company rolled out the urban SUV Ford EcoSport in June 2013. It had announced a $142-million investment in the EcoSport. With the Ford EcoSport, the Chennai plant will ramp up to full capacity (200,000 units). In 2010, production hit 127,000 units.[13]

As part of its plan to launch 8 new vehicles by 2015, the car maker is pumping in an investment of $1 billion for a new state-of-the-art manufacturing plant at Sanand, Gujarat. The plant is coming up on a 460-acre site. It will have an initial installed capacity to manufacture 270,000 engines and 240,000 vehicles a year. Coming up alongside the plant is the supplier park, spread across 150 acres. The company has attracted 19 world-class supplier manufacturers as of March 2012. The plant commenced production in 2014.[14]

Once the Sanand plant is fully operational, Ford India will have a cumulative capacity to make 440,000 cars and 610,000 engines annually.[15]

Models

Current

  • Ford Endeavour (2003–present)
  • Ford Figo (2010–present)
  • Ford EcoSport (2013–present)
  • Ford Figo Aspire (2015–present)
  • Ford Mustang (2016–present)
  • Ford Freestyle (2018–present)

Discontinued

Sales and service network

As of April 2016, Ford has more than 376 sales and service outlets in 209 cities across India.[16]

Sales performance

In the year 2010, FIPL recorded sales of 83,887 vehicles against 29,488 vehicles sold during the year 2009 and registered a sales growth of 172%.[17] Ford India remains India's No. 1 PV exporter, beats Hyundai by 696 units.[18]

Exports

Ford India currently exports 40 percent of its engine production and 25 percent of its car production to 35 countries. Some of them are: United States, Canada, Mexico, Saudi Arabia, South Africa, Nepal, Mexico, Kenya, Bahrain, Angola, Bermuda, Ghana, Iraq, Liberia, Lebanon, Malawi, Madagascar, Mauritius, Nigeria, Senegal, Tanzania, UAE, Zambia and Zimbabwe.[19]

Corporate social responsibility

Ford India's CSR activities are focused primarily in four key areas: road safety, education, healthcare, and environment.[20]

References

  1. https://www.bloomberg.com/news/articles/2017-09-18/ford-mahindra-reunite-to-ally-for-new-generation-vehicles
  2. "Ford Plant and Corporate Office". Archived from the original on 13 December 2011. Retrieved 1 August 2011.
  3. "Mahindra and Ford Announce a Joint Venture To Drive Profitable Growth in India and Emerging Markets | Ford Media Center". media.ford.com. Retrieved 13 June 2020.
  4. Ford India Private Ltd, Ford Cars India, Ford Motors India, Ford Fiesta India, Ford in India
  5. "Ford drives into Sanand". Business Line. Retrieved 8 September 2012.
  6. "Ford to launch Fusion in Dec — India's first `crossover' car". Business Line. Retrieved 26 August 2004.
  7. Ford looking to achieve full capacity; plans to expand soon
  8. "Ford Figo roll out by March 2010". Archived from the original on 5 February 2010. Retrieved 28 January 2010.
  9. Ford - Virtual Plant Tour
  10. "Ford India to export small cars from mid-2010". Archived from the original on 27 February 2009. Retrieved 28 January 2010.
  11. Ford India Engine Plant Rolls out 1,00,000th unit
  12. "Ford India increases engine capacity". Business Today. Retrieved 7 September 2012.
  13. "Ford looking to achieve full capacity; plans to expand soon". Business Line. Retrieved 7 September 2012.
  14. "Ford lays foundation for $1-b unit at Sanand". Business Line. Retrieved 7 September 2012.
  15. "Ford India is changing the way its parent Ford Motor Company functions". Business Today. Retrieved 7 September 2012.
  16. http://www.india.ford.com/about
  17. Ford Records Strong Sales Growth In 2010, Figo Caps The Year With Several Awards
  18. Ford India begins bulk export of cars from Chennai
  19. "Ford India Private Limited 3Ci Score". 3Ci group. Retrieved 24 January 2016.
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