Nigel Harris, President & Md, Ford India

Since its entry into the Indian market about two decades ago, Ford has invested over $2 billion to expand its local manufacturing base and augment its sales & service network. The strategy is paying dividends. In an interaction with The Dollar Business, Nigel Harris, President & MD, Ford India, reiterates how Ford shares the ‘Make in India’ vision, and his plans to triple Ford’s exports from India by 2020.

Interview by Aadhira Anandh M. | November 2015 Issue | The Dollar Business

TDB: You have been heading Ford’s India operations since January 2014. How has been your experience so far?

Nigel Harris (NH): I am very excited to be at the helm when Ford is increasing its investment and bringing great products to India. We call it our Growth 2.0 Vision. As a company, we believe in opportunities this great nation of a billion-plus people has to offer. For close to two decades of our relationship, Ford has continued to invest in India and stayed on course with its plans. Earlier this year, we inaugurated our $1 billion state-of-the-art integrated manufacturing facility in Sanand, Gujarat, taking our total investment in India to $2 billion. This reflects our belief in the long-term growth potential which is also translating into introduction of products that Indian customers really want and value. In 2015, we had promised to launch three new products. So far, we have introduced a new compact sedan Figo Aspire, and the hatchback, new Figo. The second generation Ford Endeavour will follow soon. Ensuring a successful implementation of our expansion plans in India is certainly satisfying, enriching and exciting.

TDB: Your domestic volume has registered a sharp growth in September 2015. How do you see FY2016 shaping up for Ford India in terms of sales, both domestic and international in the from of exports from India?

NH: In September 2015, Ford sold 22,428 vehicles in combined domestic wholesales and exports, compared to 13,742 vehicles in the corresponding month last year. This certainly is an indication of the Growth 2.0 Vision. With the launch of the new Figo Aspire, Figo and Ford EcoSport, we are not only stepping closer to our promise of launching new products but also fulfilling our export commitments. Today, exports form an integral part of our vision. With Figo and EcoSport, we now have Made-in-India products in over 40 markets across the globe. We hope that continued growth in domestic and export markets will help our vision further.

TDB: How is the Indian market different from those overseas?

NH: India and China are our growth engines in Asia Pacific, a region that is projected to contribute 48% to global auto sales by 2020. We believe in the promise of this great nation and see Indian automotive industry become the third-largest and touch 6.5 million vehicles by 2020. Every market has its own strengths, and so does India. Factors such as a thriving middle-class, an evolved consumer set, increasing urbanisation and government’s focus on infrastructure make India a wonderful prospect and a country with immense potential.

TDB: Does it make economic sense for Ford India to have operations at two locations with the kind of volumes you are doing? Also, Ford already exports Made-in-India EcoSport to Europe. With the ‘One Ford’ plan in place, what can expect in terms of significant growth in your exports and newer export markets for cars manufactured in Ford India plants?

NH: Ford shares the government’s ‘Make in India’ vision and is playing a key role in placing India on the global manufacturing map. We started the journey from Chennai with manufacturing and exports of vehicles like Ford EcoSport, Ford Figo, Ford Classic and Ford Fiesta. With the newly inaugurated Sanand plant in Gujarat, our installed annual capacity has doubled to 440,000 vehicles and 610,000 engines. With Sanand facility becoming operational and exports of Figo Aspire and New Figo commencing, we expect our exports to almost triple in count and we will reach out to nearly 50 markets from the current 40 over the next five years.

TDB: Ford has slowly but steadily expanded its market in India. Tell us about the difficulties you faced in the process of expansion. How have you planned your expansion strategies? 

NH: As I mentioned, Ford has stayed on course with its plans in India despite short-term, cyclical market challenges. This reflects our firm belief in the long-term growth potential of the Indian market. During this phase, we have continued to re-invest in India towards expanding our presence. As we bring more customers into our fold, we are also expanding our dealership network and now have 352 sales and service outlets in 189 cities across India. About 40% of our recent expansion has been in tier 2-4 towns, making us take products and after-sales efforts closer to customers. In addition, we have opened retail distribution of Ford genuine parts in states like Kerala, Tamil Nadu, Delhi and Karnataka and are doing our best to ensure that customers continue to have best cars, technology and after-sales benefits.

TDB: Ford has committed new investments in Tamil Nadu for future capacity expansion and establishing a new global engineering and technology center. What are your expectations from this new investment?

NH: India is at the centre of innovation at Ford, and we are delighted to strengthen our presence with a new global engineering and technology centre. We will share more details on this in the future. However, the centre will bring more jobs and harness the pool of Indian talent for high-skill jobs across product development along with IT, data analytics, manufacturing and business processes.

Ford is positioning India as a center of excellence for small cars and low displacement engines for both domestic and exports. It has embarked on an export-driven journey.

TDB: Can you give us a sense of the kind of investment made by Ford in India till date? What can we expect over the next five years?

NG: Since its entry into India, Ford has invested more than $2 billion to expand its manufacturing facilities and grow its sales & service footprint across the Indian subcontinent. Adding to previous recent investment of $2 billion, we have announced new investments in Chennai, which will be dedicated towards future capacity expansion at Ford’s Chennai plant and establishment of a new global engineering and technology center.

TDB: What are your expectations from the Figo Aspire and the new EcoSport?

NH: We are delighted with the response Figo Aspire, and new Figo are getting in terms of interest and recognition from customers. Our compact sedan Figo Aspire is a no-compromise car and sets a benchmark – from safety offered with standard dual airbags or six airbags to comfort and style and technology offered with SYNC, My Ford Dock, MyKey. The new Figo also raises the bar with its clever value-for-money proposition and a host of features never seen before in the segment. Ahead of the festive season, we have also made our clever, compact SUV Ford EcoSport even more stylish with a host of smart features and enhanced power. The new Ford EcoSport comes packed with automatic headlamps, signature light guide, daytime running lights, electrochromic mirror, rain sensing wipers and scores of other intuitive new features and delivers enhanced peak power of 100 PS (73.8 kW) & outstanding fuel economy of 22.27 km/litre with Ford’s trusted 1.5L TDCi diesel engine. More than anything, the new EcoSport along with Aspire and new Figo delivers on Ford’s commitment to bringing global products and technologies to Indian customers. With the newest portfolio of products this festive season, we look forward to welcome many more consumers to join the ever-growing Ford family.

TDB: Though the auto industry has been a reasonable success story in India, the country doesn’t even feature among the top-20 auto exporters of the world. What are the reasons? Has ‘Make In India’ addressed any of the issues? Will we see increased localisation in times to come?

NH: With the government’s continued focus on building infrastructure along with a conducive policy framework that encourages exports – including trade agreements with countries that have potential markets – the day is not far when India will be an even stronger force to reckon with in the global automobile market. We share the government’s vision and are steadfast in playing our part. Ford India’s road ahead looks really positive – both domestically and when it comes to exports from India.