Slowdown in auto sales short-term, cyclical: Ford

The Indian automotive industry may have reported a decline in sales for August, but the slowdown is short-term and cyclical, according to Ford India.

“The auto industry’s growth rate has slowed. Interest rates and fuel prices have made things difficult. However, we believe it is a short-term event and cyclical. Ford India is on its way to set up a new manufacturing plant keeping the long-term industry growth in mind. By 2020, India will be a nine-million-vehicles-per-annum market,” President and Managing Director Michael Boneham said today after the company broke ground for its second integrated manufacturing facility in Sanand, near Ahmedabad, as it aims to produce and sell more cars in India.

The Gujarat government has set aside 160 acres for a suppliers’ park near the plant, which is expected to be commissioned in 2014.

Currently, Ford India has a plant in Chennai where it manufactures the Figo hatchback, Fiesta sedan variants and Endeavour sports utility vehicle. It also exports to North Africa, Mexico, Asean nations, South Africa and parts of West Asia.

While domestic sales of passenger vehicles in August fell by eight per cent according to the Society of Indian Automobile Manufacturers, Ford posted growth in its overall sales based on increased exports.

It sold 8,914 units in August, which includes domestic and export components, a nine per cent rise from the 8,172 units it sold last year.

Justifying the company’s growth in vehicle sales, Boneham said, “Despite increasing competition and slower industry growth rates, consumers continue to choose the innovative, fuel-efficient, cost-effective vehicles Ford India offers. As part of our aggressive expansion in India and our long term commitment here, we will continue to develop, build and sell more vehicles in India.”