Financial Daily from THE HINDU group of publications
Wednesday, Nov 16, 2005
Financial Daily from THE HINDU group of publications Wednesday, Nov 16, 2005 |
|
|
|
|
|
|
|
Corporate
-
Announcements Marketing - Strategy Ford India prices Fiesta at Rs 5.59 lakh Our Bureau
New Delhi , Nov. 15 THE mid-size sedan segment in the country is set to heat up, with Ford India announcing an aggressive pricing for its latest launch in the segment — the Fiesta. The company today announced that the entry-level model of the Fiesta will have an invitation price tag of Rs 5.59 lakh (ex-showroom New Delhi) and said that nearly half the production will be of the diesel version. Apart from the 1.4-litre petrol engine entry-level model, the other two petrol variants have been priced at Rs 6.29 lakh (1.6 litre ZXi) and Rs 6.89 lakh (1.6 litre SXi). The lone diesel model, the 1.4-litre ZXi, which sports a common rail engine, has been priced at Rs 6.99 lakh. According to market analysts, the aggressive pricing is likely to hit sales of mid-size sedans from rival car companies (the Hyundai Accent and Honda City), at least in the short run. According to Mr Anang Dev Jena, Head, Synovate Motoresearch, "An entry-level pricing of less than Rs 6 lakh is certainly very aggressive. The launch of the Fiesta will impact the sales of other mid-size sedans and even entry-level mid-size sedans. It will also help expand the segment as a whole." Fiesta, the retail sales of which will commence in December, has an indigenisation level of 70 per cent. While the petrol engines for the car are being sourced from Hindustan Motors, the company is importing the diesel engines. The Ford India Managing Director and President, Mr Arvind Mathew, declined to spell out the targeted sales for the new model. Analysts, however, point out that this launch could prove to be a volume spinner for Ford, as the company now has a product for each segment of the mid-size sedan market. The company is likely to retain the Ford Ikon, which has seen a decline in sales, as it is priced about a lakh cheaper than the Fiesta and is positioned as an entry-level mid-size car. The Ford Mondeo in turn is targeted at the premium segment. The Fiesta will be the third model to be manufactured at Ford India's facility in Tamil Nadu, after the Ikon and the crossover vehicle, Fusion. The company added a second shift at its plant last year to nearly double capacity to 50,000 units. It could rise to 1,00,000, if required.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|