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Speculations soar as iconic automaker Ford eyes return to Indian roads

Northeast NewsbyNortheast News
January 14, 2024
in Business
Speculations soar as iconic automaker Ford eyes return to Indian roads

Ecosport has continued to be a favourite in the Indian used car market.

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The US-based automotive giant, Ford Motor Company, is making headlines in India after shutting down its operations in September 2021.

Recent developments, including the cancellation of a deal for selling its Chennai-based manufacturing facility, have reignited speculations about Ford’s return to the Indian market.

The scrapped deal with JSW Group, which had been making waves in the news, has stirred fresh rumours, especially with the leaked images of a design patent for the fourth generation Endeavour.

The leak suggests Ford’s renewed interest in the growing SUV segment in the country.

Ford’s previous stint in India was marred by challenges in understanding the market dynamics, leading to its eventual departure due to rising costs and subdued consumer demand.

However, the American automaker left a mark with popular models such as the Endeavour, Ecosport, and Figo.

The Ecosport, in particular, has continued to be a favourite in the used car market, as revealed by Cars24’s recent yearly report.

The model ranked high in several cities, including Chennai, Kolkata, Nashik, and Surat.

The report also shed light on the growing popularity of SUVs in the used car market, with a 4-6% increase since FY21. Leading the way are models like Brezza, Sonet, Ecosport, XUV300, Taigun, and Tiago.

The potential return of Ford to India has sparked curiosity about its market strategy, with questions lingering about whether it will reintroduce its models via the CBU (Completely Built Unit) or CKD (Completely Knocked Down) route.

Despite its previous challenges, Ford’s brand loyalty remains strong in the Indian market, suggesting the potential for a significant impact if it navigates the comeback strategically.

On broader trends in the used car market, the Cars24 report highlighted a remarkable surge in Electric Vehicles (EVs) enquiries, witnessing a five-fold increase in 2023.

Concurrently, CNG car demand experienced a two-fold rise, reflecting a growing preference for economical and environmentally friendly options.

Automatic cars witnessed a substantial 77% surge in sales, with popular models such as Honda City, Celerio, Kwid, Baleno, Nexon, and Creta leading the way.

While Maruti Suzuki continued its dominance with Swift, WagonR, Alto, and Baleno remaining popular choices, South Korean automaker Kia experienced a notable 64% sales increase, establishing itself as a formidable player in the used car market.

Tags: EcosportFord Motor CompanyJSW Group
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