Ford India to adjust production of petrol and diesel cars

Michael Boneham of Ford India has reportedly informed that the auto major is working towards adjusting the production of the petrol cars and diesel cars to handle the decreasing demand of the petrol cars in India. He had also added that based on the demand, the company will make the necessary adjustments in the production as the vehicle demand is influenced by hike in the petrol prices and lending rates.These assessments made will help the company to avoid the stock pile-up in their warehouses. They are using their vehicle exports as an approach to balance the situation of falling demand of petrol cars. While the company is facing the low demand in petrol cars, they are also facing low diesel car production, due to the lack of diesel components, there-by leading to a supply crunch of diesel cars.

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Ford India had witnessed a considerable growth in demand of the diesel vehicles in the domestic car market in the past seven months. Due to the sudden increase in the diesel car demand, the Ford car buyers are currently facing a 2.5 month wait period got its diesel cars. While the ratio of the diesel cars to the petrol car demand was recorded to be 55:45 in December, 2010, it has now increased to 75:25 due to the current gap of Rs 20 in the petrol and the diesel price.

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Boneham had also reportedly added that to make matters worse, the powertrain suppliers are unable to meet the demand due to the sudden change in adjustments made by Ford India in the diesel and petrol vehicle production. Ford India offers Ford Fiesta, Ford Figo, Ford Endeavour, Ford Fiesta Classic among its other products in India.

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