Ford Motor has arranged plans to produce a new compact automobile family developed primarily for rising markets like India and China, industry sources stated, showing disappointing sales of mainstream models worldwide’s fastest growing automobile markets.
India and China were anticipated to be the main manufacturing centers for the brand-new B500 variety, slated to start production in 2018 and to consist of a premium sedan, hatchback and sport utility vehicle (SUV), two sources with direct knowledge of Ford’s plans informed Reuters.
The car manufacturer had actually also planned to construct its brand-new designs in Brazil, Russia and Thailand, among the sources stated.
Ford’s decision, interacted to its providers in July, follows a similar relocation by General Motors to hold off the launch in India of a brand-new $5 billion household of compact automobiles.
Ford is now preparing to upgrade the EcoSport, Figo and Figo Aspire in India in 2020-2021, according to 2 different United States sources knowledgeable about Ford’s plans.
Its more enthusiastic B500 program, however, is on ice because of soft need for some little and mid-sized hatchbacks and sedans in India and China, where SUVs and “crossovers” combining the hatchback and SUV have proved progressively popular.
The expense of updating plants to produce the new cars would likewise be excessively high, one source said.
All the sources refused to be named as they have actually not been allowed to talk about the strategies publicly.
Ford refused to talk about the development.
“We are continuously examining opportunities to much better meet the requirements of consumers and do not talk about speculation about future product programs,” a Ford spokesman stated.
Knowing that, Ford has invested more than $2 billion in India and plans to invest more to set up an international engineering center in the southern city of Chennai that will assist modify products for the local market and more swiftly adapt to changing customer trends.
“India is an essential market for us in Asia Pacific,” stated the spokesman, adding that the automaker is committed to presenting new products and innovations in the country.