Ford cuts down production by half as Figo and Aspire sales decline
The American automaker, Ford has reported a decline in sales of Figo hatchback and Aspire compact sedan in India. As a result, Ford has now cut down the production by half, the average combined production of Figo hatch and Aspire stands at 6,500 units per month.
Apparently it means Ford’s success in the past is mainly due to EcoSport. Although, the recently introduced Figo and Aspire did attract buyers initially, the car maker is not able to sustain the same demand which it witnessed initially.
The initial targeted monthly production for Figo and Aspire averaged at 20,000 units, have now been reduced to average 10,800 units a month. While Figo has faced tough competition from the likes of Hyundai Grand i10 and Maruti Swift the Aspire faced competition from Maruti Dzire and the Honda Amaze in India. The production facility present at Gujarat is under pressure to begin exports to Europe early this year, which is now delayed for some reasons. Currently Ford uses the Gujarat plant to export cars to Middle East, South Africa and Mexico.
The New Figo hatchback has seen a drop of 60% between October 2015 to March 2016, while the Aspire compact sedan has witnessed a 74% drop from August 2015 to March 2016. The multi-product strategy for the brand has clearly not been working in their favour.
Speaking to media, A Ford spokesperson said,
The Indian automotive industry has been experiencing a weak consumer demand. Despite sustained levels of discounting, the B-segment, where the majority of automotive sales reside, has been flat in the first quarter.
In the month of March, Ford announced a price cut of upto 1.12 lakh rupees for the EcoSport due to announcement of Vitara Brezza by Maruti Suzuki.
Source: CNBC-TV18 and CarTrade