Ford is facing constraints from its suppliers as the company looks to meet demand for diesel cars in India. The American automaker is seeing significant increase in demand for diesel powered cars, as fuel prices have gone northwards in the recent months. The supply side constraints have also taken a toll on the sales of the company as Ford worked hard to meet growing demand for diesel cars. With the growth of diesel cars further said to increase amidst rising fuel costs and increase usage among consumers, one can expect car companies to concentrate on oil burners to bring in volumes.
“There is significant impact on diesel car production due to supply constraints for powertrain related components, which is the biggest concern for the company. The rise in demand for diesel powered car from around 55-60 per cent calendar year 2010 to around 70 per cent at present. We will back up in three months time,” Michael Boneham, President and MD, Ford India, said.