The Figo could be a cornerstone of growth, according to CEO Alan Mulally, second from left.
With few analysts expecting to see the U.S. auto market regain much of its lost ground anytime soon, Ford Motor Co. is betting heavily on emerging markets, such as India, where CEO Alan Mulally has unveiled the new Ford Figo.
Targeting the Indian market’s fast-growing small car segment, Figo made its first appearance at a news conference in Delhi, an event that underscores the strategic importance of India in Ford’s future plans, Mulally said.
Figo has no meaning in Hindi, the largest language in the sprawling country.
Ford has invested $500 million at its manufacturing complex in southern India, near Chennai, to not only build the new model, but to serve as a “center of excellence” for Ford small car production on the subcontinent, Figo is targeting a segment of the market that now accounts for more than 70% of the new vehicle market in India.
Figo leverages Ford’s older small-car platform architecture, sharing underlying technology with the Ford Fiesta, already familiar to Indian drivers, which is two generations behind the current one in Europe. This older Fiesta also formed the basis for Ford’s first small car to go into production in China.
The new Ford Figo targets the fastest-growing segment in the Indian auto market.
The exterior design, however, emphasizes Ford’s effort to increase its share in the small or B-class market, which it has generally ceded to competitors over the past quarter century.
Breaking into the small car segment will be particularly tough in India, where local players, such as Tata, and the Japanese maker, Suzuki, have long been dominant.
Moreover, Japanese makers are now introducing the latest versions of their cars in emerging markets, often within months of their home market debut.
Ford officials note that the design of Figo reflects a new “kinetic design language.” The automaker is hoping Indian buyers will respond to an alternative to the market’s traditionally more staid shapes. For its size, Figo features a rather large interior and a compliment of more up-market features, company officials claimed.
“We’re confident that the new Ford Figo will be extremely attractive to Indian car buyers,” said Michael Boneham, president and managing director, Ford India. “It’s going to be very competitive with the current market leaders and offer a tremendous value story for our consumers. We believe Ford Figo is a big game-changer for Ford that will help transform our brand into a volume player in India.”
Ford of India’s market share is so small that it has not displayed at major Indian auto shows, such as the one held in New Delhi, lending a certain irony to the introduction in the countries capital.
Ford’s new $500 million investment in India has doubled the plant’s production capacity to 200,000 units per year and introduces major advances in high-quality automation and what ‘s called innovative, eco-friendly production techniques.
“Our exciting new Ford Figo shows how serious we are about India,” CEO Mulally said. “It reflects our commitment to compete with great products in all segments of this car market. We are confident the Ford Figo will be a product that Indian consumers really want and value.”
Mulally also said Ford’s investment in its Chennai plant gears Ford India to become a major export producer within the Asia/Pacific and African regions. But should Ford succeed with Figo, it may not have much left over for export.
Though the Indian market has been hammered by the global economic recession, the country’s rapidly-expanding middle class has been fueling a boom in automotive purchasing, not unlike what China began to experience a decade ago. Government reforms have provided opportunities for makers like Ford to expand their presence on the subcontinent, even as native makers, like Tata and Mahindra, gear up for an export push into Europe and the United States.