Ford Motor Company in India: Developing the Ford Figo
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Case Code : MKTG299
Case Length :20 Pages
Period : 2007-2009
Pub Date : 2012
Teaching Note : Not Available
Organization :Ford India
Industry : Automobiles
Countries : India
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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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The Small Cars Segment of the Passenger Vehicle Market in India
According to the Society of Indian Automobile Manufacturers1 (SIAM), passenger cars were classified on the basis of length into mini (=3,400mm), compact (3,400-4,000mm), mid-size (4,001-4,500mm), executive (4,501-4,700mm), premium (4,701-5,000mm) and luxury (>5,000mm). Earlier cars were classified on the basis of price into segments A (< Rs2 .300,000), B (Rs. 300,000-500,000), C (Rs. 500,000- Rs. 1 million), D (Rs. 1 million - Rs. 2.5 million) and E (> Rs. 2.5 million). Multi Utility Vehicles (MUVs) were classified on the basis of seating capacity - seven, nine, and 13-seaters. As of 2010, passenger vehicle sales contributed to 16% of the total automobile sales in India.
Passenger vehicle sales had shown an increasing trend in the 2000s. India was the seventh largest producer of passenger cars in the world, as of December 2010 with sales of 1.95 million units. Maruti Suzuki, Hyundai Motor India Ltd. (HMIL)3 , and Tata Motors Ltd. (Tata Motors)4 were the dominant players with a combined share of more than two-thirds of the total sales of passenger cars.
In India small cars accounted for more than 70% of the total cars sold in the country and the country was the largest manufacturer of small cars in the world. Small cars - mini and compact - accounted for the sales of around 900,000 cars in India in 2009. With annual sales forecast to grow to 3.0 million units by 2016, global automakers started moving to introduce small cars in the country.
Being the largest segment, the small-car segment witnessed the highest new car launches i.e. 11 new launches between the three years 2007 and 2010 (of which five were launched in 2010) with major ones being the Ritz, the A-Star and the Zen Estilo (from Maruti Suzuki), the i10 and the i20 (from Hyundai), the Indica Vista (from Tata Motors), the Polo (from VW), the Etios (from Toyota), the Ford Figo, and the Chevrolet Beat...
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