Poor sales in India for both Ford and GM, despite their 20 years of tradition on the market

Article by Christian A., on November 12, 2012

General Motors Co. and Ford Motor Co. have a combined market share in India of around 6.5% (which is on a declining trend). These are particularly poor showings, considering that they entered the market in India nearly 20 years ago. Researcher Intelligence Automotive Asia said that GM’s sales in the third-largest automobile market in Asia have fallen by 17% in the last 10 months while Ford's deliveries are down by 8.4%.

GM and Ford continue to be hopeful but they face increasing competition from Toyota Motor Corp. and market leader Maruti Suzuki India Ltd., which produces 4 in 10 cars sold in India. Analysts believe that the U.S. automakers failed to do well in India because of their high prices and poor service.

India is a significant market since it’s estimated to surpass Japan as the No. 3 passenger-vehicle market in the world this decade. The U.S. automakers are increasing efforts to be of service to Indian motorists but they haven’t yet proven that they can still be relevant.

Deepesh Rathore, a managing director for researcher IHS Automotive in New Delhi, said that GM and Ford have “not been able to understand the market.” He explained that they haven’t provided training for their dealerships and the competition has become more intense.

The Hyundai Verna has outsold the Ford Fiesta four-to-one. It can be recalled that in July 2011, Ford introduced the newest Fiesta sedan model and priced it at 823,000 rupees ($15,120), making it almost 20% more expensive than the comparably sized Verna. It was in 1994 that GM entered India. Back then, it was in a venture with Hindustan Motors Ltd. They sold the sedans: Opel Astra and the Corsa and Vectra in a market that prefers hatchbacks. In 1999, GM bought out Hindustan Motors' stake in the venture.

Topics: ford, gm, india, sales

If you liked the article, share on:

Comments

Recommended

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries