Ford poised to lead small SUV market growth
Ford, which catered to the SUV boom in the 1990s, has revealed its plans to invest more in small and midsize SUVs, which are set to launch numerous models around the world. The small SUV segment, which has seen a massive increase than any other Ford vehicle segment, is wanted to be larger and with newer and 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. The huge investment was said to be a major gamble to incorporate Ford’s plan to spread multiple small SUVs by Jim Farley, Executive Vice President of Global Sales and Marketing, and is expected to pay off. Small SUVs have helped Ford multiply its market share; especially traditionally tougher coastal markets like California and catalyzed expansion into developing markets. CEO Alan Murray has pushed beasts like the Explorer SUV on a diet to invite more customers looking for rough-terrain performance, cargo space, and fuel economy. With increasing wealth in the Indian and Chinese markets, One Ford Plan has thrived 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 style looks intriguing, while the fact that people can sit above traffic and pack luggage, as well as people in comfortably, is attractive; while the main factor is the fuel economy of the vehicles. SUV deliveries worldwide have peaked at 35 percent since 2005, representing 13 million units sold per year, and will continue to outperform other supply segments for 2017, increasing their share of vehicles sold to 20 percent. hundred. The growth is largely driven by the rise of paperbacks in India and China and the rise in gas prices in North America.
To capture a large chunk of market share, Ford must make efforts to drive growth outside of North America. Ford units in North America and Europe have made huge gains in the SUV and small utility markets despite huge losses in the sedan and hatchback segments. The orders go far beyond the production of small utilities, says Farley and that nothing has been more prolific than the boom in small SUVs. Western trends have now apparently carried over to developing countries as customers are fascinated with the concept of sedan-like drivability and fuel efficiency. China proves to be the biggest opportunity as it is home to demands for small, medium and large SUVs, and market demand is expected to double in the next five years.
The global need is believed to be rapidly converging towards the segment of the most attractive vehicles with enormous power and good fuel economy following the rise in world gasoline prices. As the consumer progresses in income and stature, they are moving toward small utilities rather than small cars in favor of large space along with generous features, great gas mileage, and safety for the whole family.