Ford India is hit with a supply crisis for its EcoSport SUV at a time when the Indian auto industry is facing a crunch in demand. This unexpected development is reportedly boosting the sales of its rivals.
Ford India, a subsidiary of the US automobiles company, has suspended the bookings of the compact EcoSport SUV which was launched in India on 26 June. It is not sure when the company would restart the bookings. Reports are doing the rounds that it would begin in October.
"We are continuing to work with our suppliers to ramp up production of the EcoSport. Due to an extended waiting period on certain variants we had decided to stop bookings on those variants," an official from Ford India told Business Standard.
Of the 10 variants, only two of them - the entry and middle variants of the diesel model, are currently on sale. The delivery date has been pushed to December and early next year. It is reported that the waiting period of some of the variants has been extended upto 12 months.
Now, prospective buyers of Ford EcoSport are running out of patience and looking out for other alternatives like Hyundai Grand i10, Renault Duster, Nissan Micra, Honda Amaze, Maruti Suzuki Stingray and other vehicles in the market.
"I wished to buy the EcoSport but dealers are not accepting bookings. I don't wish to wait for four months that too for the diesel variant. The Hyundai Grand i10 and the Nissan Micra is what we have thus shortlisted," Deepak Jadhav, a 31-year-old media professional, in Mumbai told Business Standard.
Sales of Hyundai Grand i10, Maruti Suzuki's Stingray and other cars have apparently gone up. Renault Duster, which witnessed a huge dip in demand last month, has reportedly seen a rising trend in September.
What would hurt prospective buyers of EcoSport, besides the delay in delivery, is the increase in price of almost all its products, including the crossover SUV. The company recently said in statement that it would hike the price of its vehicles from 1 percent to 5 percent, with effect from 5 September.
According to Society of Indian Automobile Manufacturers, EcoSport has witnessed bookings of more than 50,000 units in 50 days. The company produces only 6,700-7,000 units a month, which lead to the supply crisis.