The Hindu Business Line : Ford reports drop in sales

FORD India ended 2003 with total sales of 42,956 units against 44,683 units in 2002. An increase in domestic sales made up for the fall in exports during 2003, according to company officials.

Although the sales last year were lower than in 2002, Ford India is happy that domestic sales of the Ikon at 18,558 units in 2003 grew by 24 per cent over the 14,947 Ikons sold in the previous year. In December 2003, it sold 2,118 Ikons in the domestic market against 820 sold in December 2002.

With the economic outlook positive, Ford India expects to sell 20,000-22,000 Ikons in the domestic market this year.

According to Mr Vinay Piparsania, Vice-President - Marketing, Sales and Service, this growth reflects the segment shift that is happening in the passenger car industry in the country. That is, more persons are switching over from the upper end of the hatchback segment to the mid-size segment. Sales were also boosted by the variants the company introduced during the year and by the availability of cheaper financing options.

Exports sales dropped to 24,039 units in 2003 from 28,979 units the previous year. Ford India exports the Ikon as completely knocked down kits to South Africa, Mexico and Brazil. The company is looking to export the Ikon to other markets too. The export markets continue to be flat.

Sales of the Mondeo, the luxury car, fell to 180 units from 757 units in 2002. Ford India imports the Mondeo from Ford Motor Company's plant in Belgium.

Mr Piparsania said Ford India was not unduly worried about the fall in sales of the Mondeo as it was a niche car, targeted at those who preferred to drive the car themselves. Ford India also sold 179 units of the Endeavour, the sports utility vehicle that it launched towards the end of last year.

According to Mr Piparsania, Ford India expects domestic sales to be robust as the positive signs - a buoyant economy, positive sentiment in the stock market, falling interest rates making financing options cheaper - that pushed up sales in the last quarter of 2003 continue this year too.