Ford India slips back into red in 2007-08

Ford India Pvt Ltd is back in the red in 2007-08, after posting a profit the previous year for the first time since it started operations here nearly a decade ago. Other multinational car manufacturers General Motors India Pvt Ltd, Honda Siel Cars India Ltd, Toyota Kirloskar Motor Pvt Ltd and Hyundai Motor India Ltd have posted profits for the year, according to their annual reports.

Hyundai Motor India sold 2,16,495 vehicles in 2007-08 against 1,95,261 in the previous year. Its total income was Rs 10,514 crore (Rs 9,119 crore), expenditure Rs 10,175 crore (8,404 crore) and net profit Rs 514 crore (Rs 467 crore). Ford India produces the Ikon, Fiesta, Fusion and Endeavour at its plant near Chennai. It has an accumulated loss of Rs 819.64 crore. The company, in its annual report for 2007-08, has stated that it planned investments of Rs 2,000 crore. According to the company, it began exports of fully built Fiesta sedans to South Africa and continues to export the Ikon components in knocked down condition to South Africa and Mexico. The value of exports during the year was Rs 146 crore and it helped the company meet its obligations under the EPCG scheme. Ford India’s warranty provision for the year was Rs 13.64 crore (Rs 10.71 crore).

GM India’s accumulated loss amounts to Rs 108.85 crore. Its provision for warranty and after-sales service was Rs 19.21 crore (Rs 20.09 crore). According to Honda Siel Cars India’s annual report, the company carries forward a surplus of Rs 790 crore to the balance sheet. Toyota Kirloskar Motor has said that its warranty provision for the year amounted to Rs 9.33 crore against Rs 7.72 crore the previous year.

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