If you are a company looking to increase your output and increase your sales then the current market will be making this very tough. If you are a car manufacturer looking to double your annual sales by 2015 then you are definitely in a difficult situation. Well, this is exactly what Ford plans to do, sell 8 million cars a year by the middle of the decade – a very ambitious target, I think.
In order to do this Ford has had to look at ways it can tap into growing markets, one way to do this is to start making small fuel efficient cars and hybrid or plug in electric cars. Ford plans to introduce electric cars in the very near future, but it is a believer that there can be more extracted from conventional engines.
Being a global company means that Ford is not reliant on any one country’s economy. Although primarily a US brand Ford has spread itself right around the world, which is very handy right now! Through all the doom and gloom countries like India and China have continued to grow, their rapid economic expansion has seen demand for higher-value items such as cars increase substantially. In India alone car sales increased by 30% in 2010.
A 30% year on year growth for an automotive brand in the current market is exceptional, so Ford has decided to expand its operations in India in order to meet its 50% growth targets. Ford plans to invest $1bn (£612m) in building a new factory in the western state of Gujarat, which will be its second production line in the country.
