The Hindu Business Line : Ford India expects sales boost with Fiesta launch

Mr William Clay Ford, Jr. , Chairman & CEO, Ford, and Mr Arvind Mathew, Managing Director, Ford India, at the launch of Fiesta in the Capital on Tuesday. — Kamal Narang

New Delhi , Oct. 25

FORD India is hopeful of catapulting itself into the `volume spinners' league with its latest offering, the mid-size sedan Fiesta.

Retail sales of the new Fiesta, which comes with a 1.6-litre gasoline and 1.4-litre diesel engine, will commence from mid-November.

While the pricing for the vehicle has not been announced, auto analysts expect the car to cost around Rs 6 lakh, and compete with the Honda City in the market.

The Fiesta was developed by a team of engineers with product development teams from the UK, Germany and Australia, and is Ford India's fifth model in six years.

At present, Ford India has a single digit market share in the country. However, Mr Bill Ford, Chairman and CEO of Ford Motor Company, said the launch would boost the company's share in a market, which is growing at about 10 per cent.

"We expect the Fiesta to do a lot for our sales in India. We are trying to introduce newer and innovative products in the market," Mr Ford said.

Meanwhile, company officials said that Ford India was not looking at bringing in a compact car, and would focus on expanding sales of the Fiesta.

Mr Ford also stated that the company plans to develop India as a source for auto components and increase its R&D facility here.

He added that the overall car sales in India could replicate the growth seen in China, if road infrastructure could be developed on similar lines.

The Detroit-based carmaker's Indian subsidiary, which commenced operations a decade ago, now assembles the Ikon sedan, the mid-sized Fusion and Endeavour sports utility vehicles at its plant near Chennai. It also imports fully built Mondeo sedans.

Ford sold 27,064 vehicles in India, in 2004, and exported nearly 24,000 Ikons to South Africa and Latin America.

It added a second shift at its plant last year to nearly double capacity to 50,000 units, which could rise to 100,000, if required.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page