Ford Motor Co.
) Indian unit sold 14,092 vehicles in Aug 2014, up 27% from 11,065
units in Aug 2013. The figures include both domestic wholesale and
The increase was driven by exports, which spiked to 7,291
vehicles in the month from 3,057 vehicles in Aug 2013. However,
domestic wholesales fell to 6,801 units in Aug 2014 from 8,008
vehicles in the same month in 2013.
Nevertheless, Ford India expects domestic sales to ramp up as
the festive season nears. As a result, the company is planning to
add a third shift to its Chennai plant. Further, it has reduced the
waiting period for the EcoSport SUVs, which are popular in the
country. Currently, there are over 60,000 EcoSport cars in
The Chennai-made EcoSport is also popular in South Africa,
Taiwan, Australia and several European countries, which helps boost
Ford's exports from India. In fact, last month, the combined
domestic wholesale and export sales of EcoSport surpassed 100,000
units in India.
Ford is pursuing a major expansion plan in China and India. The
company expects the 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 increase the dealership count
to 500 in India by 2015. The company also 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.
At present, Ford carries a Zacks Rank #3 (Hold). Meanwhile,
better-ranked automobile stocks include Tesla Motors, Inc. (
), Fox Factory Holding Corp. (
) and Gentherm Inc. (
). Tesla currently sports a Zacks Rank #1 (Strong Buy), while Fox
Factory and Gentherm have a Zacks Rank #2 (Buy).
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