Rumour: Ford cuts production at Sanand plant by 50%

Ford is rumoured to have cut monthly production at its plant in Sanand, Gujarat to almost 50% of its original target. This step has been taken as a result of the weak demand for the company's new products.

Ford produces the Figo Aspire compact sedan and the Figo hatchback at the Sanand plant. The Aspire was launched in India in August 2015, while the Figo hit showrooms in September 2015. Both these cars are positioned in highly competitive and crowded segments. Established players such as Maruti Suzuki and Hyundai dominate these segments.

While, sales of the compact sedan have fallen by 74% between August 2015 and March 2016, sales of the hatchback have declined by 60% between October 2015 and March 2016.

According to media reports, the combined monthly production targets for the Figo Aspire and Figo were brought down from an average 20,000 units to 10,800 units. The average monthly production is reported to be a meagre 6,500 units.

At present, vehicles built at the Sanand plant are shipped to the Middle East, South Africa and Mexico. The facility was expected to start exporting cars to Europe in 2016, but the plan seems to have been delayed due to unknown reasons.

Source: Money Control