Renowned Car Manufacturer Ford’s India strategy is heading in the right – direction despite a slowing economy according to the Company’s President and Managing Director Michael Boneham. Boneham further asserted that he has faith in transparency in policy and positive consumer sentiment, and this only will take the company long way in boosting the industry.
Michael Boneham with Ford Figo
Ford has decided to strengthen its presence in the small car segment. The car company will involve in more of localization activities along with addition to maintain its domestic and export strategy for vehicles and engines. Boneham further expressed to The Hindu, “The decision to enter the small car category is mainly because we see a vast majority of people who are graduating from two-wheelers to four-wheelers as a result of GDP and purchasing power parity improvements. A lot of our future launches will be in this segment. This is also the area where 70 per cent of all cars are sold, and we don’t expect this mix to change in the future.
The president further added “Our export strategy will provide a nice hedge for us, and allow us to respond flexibly to global conditions.” To a question, he said “what we really need, however, at this point is transparency in policy. We can’t have sudden taxes on diesel cars; it would become a major issue for us. Secondly, consumers have to get over their negative mindset, which has become like a wall of worry due to rising inflation. If we see Europe pick up, it will help India and other countries,”
On RBI’s decision of key interest rates unchanged Boneham said that the decision was understandable in light of inflation. “While I would have liked to see a drop in interest rates, it makes sense as to why the central bank decided not to. However, with regard to the CRR cut, I think it’s a very positive move. By freeing up cash, the banks will make it more accessible to the consumers. As we know, 70 per cent of our car purchases are financed in this way,” he said.