The Hindu Business Line : Ford’s new car qualifies for excise relief

As a first offering that would qualify it to enter the compact car segment, Ford India today launched a diesel variant of Fusion. This would allow the company to avail itself of excise duty benefits offered to diesel cars with engine capacity up to 1.5 litre and petrol cars with 1.1 litre engine capacity.

The company launched the diesel variant of the model at Rs 6.59 lakh (ex-showroom Delhi), which will be powered by a 1.4 litre Duratorq engine. Mr Arvind Mathew, Managing Director, Ford India, said the new product was an attempt to increase its offering in the diesel segment. However, he refused to comment on making changes in the petrol version to make it eligible for excise duty.

Currently it has Fiesta whose diesel variant contributes 65-70 per cent of the total sales of the model. The Fusion model has 60 per cent localisation content against Fiesta’s 80-85 per cent.

Mr Mathew said, “The price of Fusion was determined by market dynamics. And it has nothing to do with excise duty benefits or localisation content.”

Commenting on the company’s plans to enter into the small car segment, he said, “We are studying the small car segment. But not at the price point of Rs 1 lakh ($3000).” Whether a car in this price range was feasible or not, he said, “I am curious to see such a car…how it looks.”

He said that the company had a capacity of 100,000 units but due to certain bottlenecks was manufacturing about 65,000 units. Declining to divulge any sales targets, he said “I will not chase numbers but focus on providing the best brands in the country.”

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