Maruti cars seen in Ford showrooms (source- raj kamal)
People opening Ford dealerships are suffering a lot. In such a situation, now everyone has started displaying the vehicles of other companies in their showrooms.
Ford’s decision to stop production for the domestic market has posed significant challenges for its dealers. These businesses are facing an uncertain future as the sale of new Ford cars will be limited till the stock runs out. Even selling these would be difficult, as the customers are not sure of getting the after sales service and spare parts.
Even though Ford has drawn up a restructuring plan, not every dealer may be ready to switch to the service and parts business alone. As per the data provided by FADA, there are around 170 Ford dealers. Many of these are fairly new and have invested several crores of rupees to set up their dealership business.
Switching to a service and parts business may not be profitable enough to achieve the target return on investment. Employees working in sales and related departments can also lose their jobs. Going by the recent pictures and videos, it appears that some Ford dealers are shifting to other brand dealerships altogether.
In one such case, the Chakrapani Ford dealership in Assam can be seen displaying Maruti Suzuki cars like DZire, Alto and Baleno. A similar incident has been captured on video, in which a Ford dealership has displayed a Toyota Fortuner inside its premises. The location of this dealership has not been disclosed.
Ford has assured that its customers will continue to get the same level of services as before. Dealers will be given adequate compensation to convert their businesses into service and spare parts providers. Ford had also said that they are not exiting India at all, but are changing strategy to focus on the premium car segment. The company believes this strategy will ensure a sustainable, profitable business.
Ford plans to launch cars like the Mustang Coupe, Mustang Mach-E Electric and others in India, which will be imported through the CBU route. Some percentage of the existing dealers may be involved to sell these premium cars.
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