Ford Motor Co.’s (F) Indian unit sold 11,935 vehicles in Jun 2014, up 36% from 8,771 units in Jun 2013. The figures include both domestic wholesale and export figures.
Domestic wholesales surged to 7,258 units in Jun 2014 from 7,145 vehicles in the same month in 2013. Likewise, exports spiked to 4,677 vehicles in the month.
During the month, the Indian Government’s decision to extend the excise duty concession will have favorable impacts on consumer spending. Ford India believes that the government will support policies that will boost the manufacturing sector and lead to economic growth. Moreover, Ford undertook different strategies to drive sales.
Ford India recently launched the 2014 Ford Fiesta, which comes with a stunning new look, plush interiors and several features. The vehicle also features SYNC with Ford AppLink which is a smart, hands-free in-car technology that ensures driver’s connectivity on the road.
Ford India is also organizing Monsoon Ready Service Camps in the country, under which the automaker will offer some additional services to the customers. These include a free car wash and vehicle report card, offers on new wipers, batteries, brake pads and suspension, and attractive gifts.
Ford is pursuing a major expansion plan in mature and emerging markets, primarily Argentina, Brazil, China, India and Thailand. The company expects Asia-Pacific (mainly China and India) to account for 70% of its global growth in this decade and generate 40% of its vehicle sales in the next 4 to 5 years.
Ford expects compact car sales in India to reach about 2 million vehicles in 2018, almost double the 2013 level. In order to support the increasing demand, Ford aims to expand the dealership count to 500 in India by 2015.
The company plans to boost engine exports to Europe from its Indian units and intends to manufacture 450,000 cars and 600,000 engines in India by 2015. Currently, the automaker exports 40% of its engines and 25% of its cars of Indian make to 35 countries.
Ford currently carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks worth considering are Fox Factory Holding Corp. (FOXF), Gentherm Inc. (THRM) and Wabash National Corp. (WNC). All of these stocks sport a Zacks Rank #1 (Strong Buy).
Read the Full Research Report on THRM
Read the Full Research Report on FOXF
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- Automotive Industry
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- Ford India
- Ford Fiesta