Abstract

Ford Motor Company had entered the Indian auto market in 1995 and introduced mid-sized car models, but its sales growth in the next 15 years had not kept pace with the growth in the market. As of February 2009, India had a 3 percent share of the global market for passenger cars and commercial vehicles. Unlike the US market, the Indian market for passenger cars was dominated by small cars. To capture a significant share of this high-volume, high-growth segment of small cars, many companies – both multinational and Indian – were gearing up with new product launches. The case concludes with questions on the strategic decision that had to be taken on Ford's loss-making Indian subsidiary, in terms of its course of action for the domestic market and how it would contribute to the long-term success of the parent company in other emerging markets.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The market performance of Ford's Indian subsidiary, relative to its competitors - both Indian and multinational.
• The significance of small cars in an automaker's product mix for volume growth in the Indian market.
• Ford India's strategic options for long-term growth and success in the Indian market.
• Potential for Ford India to contribute to the global competitiveness of the parent company.

Keywords

Ford India Pvt. Ltd., Ford Motor Company, Indian automotive industry, Asia-Pacific and Africa regions, Growth strategy, Domestic sales, Export potential, Global competitiveness, Society for Indian Automobile Manufacturers (SIAM), Passenger cars, A2 - Compact car, Sedans, Price-conscious consumers, Automotive Mission Plan 2006-2016, Small car hub, Emerging markets, Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Tata Motors Ltd, General Motors (GM) India Pvt. Ltd., Chevrolet Spark, Aveo U-VA, Beat, Fiat India Pvt. Ltd, Toyota Kirloskar Motor Pvt. Ltd., Polo, Micra