The story of rapturous rate of industrialization of India and China is not any secret and this makes these two countries of Asia a potential market for a number of industry sectors. In the car world, Ford Motors is looking at promising growth in the Asia-Pacific region especially in China and India as the disposable cash in these countries flows pretty freely. Chinese car market exhibits exceptional potential with sales expected to reach over 30 million units in next 10 years. According to the Chief Executive Officer of Ford Asia, Mr. Joe Hinrichs, the company is focusing on the right play in the markets of India and China which have been recently flooded with entry-level cars as these offerings draw in more volumes from the budget conscious customers.
For Ford Motors to emerge as a competitor of already established car makers of this region, certain radical adaptations in the overall strategy are necessary; one such adaptation could be rigorous offering of lowest price cars in India and China. Mr. Hinrichs mentioned that in order to achieve the goal of lowest pricing Ford needs to adopt careful trimmings on the finished product. The incorporation of this strategy could result into Ford India and Ford China offering fewer features in their cars as compared to their counterparts in Australia and US. Mr. Hinrichs further added that this strategy is no potent risks as the car market in Asia-Pacific region especially India and China is growing by the day, so the company has no choice but to play in this market.
A similar drift in business toward East can be seen in other industry sectors as well, a fresh example if of Apple selling millions of iPad and iPhone in China. Mr. Hinrichs informed that Ford is going to back its strategy on Ford Fiesta which is currently tagged at a price between $12,300 and $17,500 in Asian countries. The Ford Fiesta was preceded by Ford Focus in China and 15 more cars are planned for launch in China over the next three years. He also mentioned that the growth prospect for the rest of this decade is the maximum in the value-oriented central and eastern part of China. In April 2012, the sales of Ford China increased by 24 percent to a total of 54,881 sold units. In India, year-on-year sales growth of Ford cars surged by 13 percent in the month of April 2012.
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