Boston, MA 01/01/2014 (wallstreetpr) – It is important to know whether Ford Motor Company (NYSE:F) is doing enough to expand presence in India. But first, a look at the company’s overall performance can help explain if there are any opportunities for the company going strong in India.
Ford Motor Company (NYSE:F) had a fabulous performance in 2013. It sales surged in the year and so did revenue and earnings. The greatest benefits for the company came from the emerging markets such as China.
The company is now planning fresh vehicle releases which are expected to launch this year. Ford Motor Company (NYSE:F) is hoping to launch 16 new vehicle platforms for the U.S. market and 7 new vehicle platforms for the international markets such as Latin America, Europe, Middle East, Africa, China and India.
Of its international markets, Ford Motor Company (NYSE:F) has put a lot of emphasis in gaining greater market share in China and India. And India is particularly strategic for the company’s growth viewing the available opportunities and the efforts being made.
Indian market
Despite its huge opportunities, India remains a largely unexploited market for Ford Motor Company (NYSE:F). The company moved about 14,930 vehicles in India last October. In comparison, the company moved 191.980 vehicles in the U.S. over the same month. As a result, sales from India make almost negligible contribution to the company’s overall revenue.
However, with Indian auto market expected to triple by 2020, Ford Motor Company (NYSE:F) has been taking the market seriously. Last year it announced about $1 billion investment for a new plant in the market. It has also been increasing its dealership and customer engagement in the market.
Indian challenge
The challenge that Ford Motor Company (NYSE:F) is facing in India is that it is offering a smaller number of vehicles variety in the market compared to competitors. Yet another challenge to the company’s success in India is its car offering. It offers less compact cars which are not attractive to consumers in the market given the state of roads and car density.
As a country, India is also faced with high car loan rates and inflation problems which have also stagnated car sales in the market and in the process Ford Motor Company (NYSE:F) witnessed about 15 percent sales decline from 2011 to 2012. But the situation is expected to improve.
