Ford, which catered to the SUV boom of the 1990s, has revealed plans to invest more in small and midsize SUVs that will launch numerous models around the world. The small SUV segment, which has seen a huge surge compared to any other Ford vehicle segment, wants to get bigger with newer, much more advanced vehicles.
Ford has affirmed its plans to launch its Ecosport subcompact SUV in more than 60 countries around the world from just 10 in the current picture. The Escape, renamed the Kuga outside of North America, will launch in Chinese markets this year. Jim Farley, executive vice president of global sales and marketing, said the big investment was a big bet to incorporate Ford’s plan to spread small SUVs, and he’s confident it will pay off. Small SUVs have helped Ford multiply its market share; especially the traditionally more difficult markets of coastal areas like California and the catalyzed expansion in developing markets. CEO Alan Murray has pushed beasts like the Explorer SUV on a diet to appeal to more customers looking for rough-terrain performance, cargo space and fuel economy. With the growth of wealth in the Indian and Chinese markets, the One Ford Plan has prospered very well and is expected to continue for years to come.
People all over the world have fallen in love with these small utility vehicles. The body styling looks intriguing, while the fact that people can sit above traffic and comfortably pack luggage is appealing; while the main factor is the fuel economy of the vehicles. Worldwide SUV deliveries have peaked 35 percent since 2005, accounting for 13 million units sold per year, and will continue to outperform other supply segments for 2017, lifting its share of vehicles sold to 20 percent. The growth is largely fueled by rising paperbacks in India and China and rising gasoline prices in North America.
To capture a large chunk of market share, Ford must strive to drive growth outside of North America. Ford’s North American and European units have made huge gains in the SUV and small utility market despite big losses in the sedan and hatchback segments. The orders go far beyond the production of small public services, says Mr. Farley, and that nothing has been more prolific than the boom of small SUVs. Western trends have now apparently been transported to developing countries, as customers are fascinated by the concept of sedan-like drivability and fuel efficiency. China proves to be the biggest opportunity as it harbors demands for small, medium and full-size SUVs, with market demand expected to double in the next five years.
It is believed that the global need is rapidly converging towards the segment of the most attractive vehicles with enormous power and good fuel economy following the increase in global gasoline prices. As the consumer progresses in income and stature, he or she is moving toward small utilities rather than small cars in favor of large space coupled with generous features, great fuel economy, and safety for the entire family.