Ford India in 2009 (A): Need for a Strategy Change?

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR370 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Competition in the Indian passenger car market
The small car segment of the Indian passenger car market
India as a global manufacturing hub for small cars
Case Length : 18 Pages
Period : 2004-2009
Pub Date : 2010
Teaching Note : Not Available
Organization : Ford India Pvt. Ltd
Industry : Auto and Ancillaries
Countries : India

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.

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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.

Issues:

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.

Contents:

  Page No.
Introduction 1
Ford Motor Company and its Indian Subsidiary 2
The Small Cars Segment of the Passenger Vehicle Market in India 4
India as a Manufacturing Hub for Small Cars 6
Small Car Plans of Other Automakers for India 7
Conclusion 7
Exhibits 8

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

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