The Hindu Business Line : Ford Fiesta's diesel version may lead sales

IF the initial response is anything to go by, the diesel version of the Ford Fiesta is expected to lead sales of the new model, deliveries of which will begin in the second week of December.

About 1,200 cars have been booked so far for the new mid-size premium sedan, with the diesel version accounting for 65 per cent of the cars booked, according to Ford India officials.

The balance 35 per cent is divided equally between the two petrol versions - the 1.4-litre and the 1.6-litre.

It recently launched the Fiesta with an ex-showroom price of Rs 5.59 lakh for the 1.4-litre petrol, Rs 6.29 lakh for the 1.6 ZXi, Rs 6.89 lakh for the 1.6 SXi and Rs 6.99 lakh for the diesel version.

The company also anticipates that the Fiesta 1.6-litre petrol will cannibalise sales of the 1.6-litre Ikon, the entry-level mid-size sedan.

It is not unduly worried about this happening and expects the Ikon Flair (1.3 litre petrol) to pick up in sales.

According to Mr V. Sivaramakrishnan, Vice-President - Marketing, Sales & Service, , the company sells about 700-800 units of the Ikon Flair every month, with the 1.6-litre version selling about 300 units.

The Flair will continue to undergo modifications and the company will come out with more attractive schemes to make it the car of choice for those looking for an entry-level mid-size car.

The company found that nearly 30 per cent of those buying an Ikon Flair were jumping straight from owning a two-wheeler to purchasing a three-box car, which in itself is significant, according to Mr Sivaramakrishnan.

Normally, two-wheeler owners first buy a hatchback and then graduate to a mid-size entry-level sedan.

The Fiesta and the near simultaneous launch of the Honda City ZX, an improved version of the popular City, have stirred up the passenger car market at a time when sales were showing signs of slowing down. Industry watchers expected the Fiesta to challenge the Honda City and hence its aggressive pricing.

At a recent media interaction here, Mr Rajive Saharia, General Manager - Marketing, Honda Siel Cars India Ltd, was asked whether the Fiesta's pricing would impact the City's sales.

"We are fairly confident of what we have developed for our customers. The introduction of the Fiesta, with very aggressive pricing, is going to make the market so much more buoyant," was his response.

He stressed the point that Honda had always maintained a steady price line, unlike a number of other car manufacturers, which helped retain the value of its cars.

"We are very confident of our pricing," he added. He also said that the company had no plans to launch a diesel version of the City ZX.

The closest competitor to the Fiesta diesel version is Hyundai's Accent CRDi, which retails at just over Rs 7 lakh (ex-showroom).

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