Ford may hike prices to offset rupee depreciation impact
New Delhi: Ford India on Wednesday said it is considering a hike in prices of its cars to offset impact of rupee depreciation. "Input costs are increasing so are the freight costs. The rupee depreciation has had an impact on our margins. We have been absorbing it for a while but our capacity to absorb further is very less now. We are assessing and monitoring the situation and we are contemplating to pass it on the consumers," Ford India President and Managing Director Joginder Singh said.
The company also said it will increase exports to more 50 global market in the next 4-5 years as part of company's overall international plans. "The company is increasing the export market from 36 countries right now with its compact car Figo. With the launch of EcoSport, it is looking to increase exports to 50 countries," Singh added.
New markets where EcoSport will be exported are Europe, Australia, New Zealand and Taiwan. "Despite the current macro economic factors and ongoing market challenges, India is a big part of our global strategy. Exports from India have been an integral part of that strategy and will help us stay on track for growth in the region," Ford Group Vice President and President Asia Pacific Dave Schoch said.
US auto major Ford is also betting on Asia Pacific region for future growth. Talking about the importance of Indian market, Schoch said: "By 2020, demand of small vehicles will account for more than 60 per cent of auto market globally. India and China will the two major growth drivers."
On its popular recently launched SUV EcoSport, Singh said the company has a backlog of 50,000 units and the company and is trying to ramp up production by working with the suppliers. "So far, we have delivered 15,000 units of EcoSport and waiting period is 3-6 months depending upon on variants and we are trying to reduce that," said Singh.
In August, Ford had stopped bookings of some of the variants of its compact sports utility vehicle 'EcoSport' in the wake of heavy demand. Ford India had launched the EcoSport on June 26 and the company had said it received 30,000 bookings within 17 days of the launch of the vehicle.
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