Tuesday, 20 September 2011

Ford India to take advantage from Economies of Scale

In today’s competitive scenario of Automobile Manufacturing, Car makers are facing cut throat competition. The car makers in India are already struggling due to High Fuel Prices, Interest rates hike and it’s not once that has happened, this has now been the news that is seen almost every month in India.

Ford has come up with a strategy to work against the burgeoning pressure; it will now launch the cars for the Global markets. For example, VW has recently announced in the news that it will launch an India specific version of UP, Ford does not wants to burn its hands by launching a India specific model. Infact, Ford says it will either launch the cars from its Global stable or if it will launch news cars it will be launched across the Globe. Ford India had earlier stated that it will launch 8 new models for Indian market which will roll out from Ford India’s two plants at Chennai and second Upcoming at Sanand.

But now, Ford India head says “we will launch these models across the globe”, this will enable them to have economies of scale and thus enable them to launch cars at a cheaper price.


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