The Hindu Business Line : Ford India aims at doubling turnover in one year

DRIVEN by the sales of the entry-level Ikon and the recently-launched Fiesta models, Ford India Pvt Ltd hopes to achieve unit sales of around 50,000 vehicles in the domestic market in calendar year 2006.

In 2005, the company hopes to sell 25,000-27,000 car units in the domestic market, according to Mr V. Sivaramakrishnan, Vice President - Marketing, Sales & Service, Ford India.

In revenue terms, the company is hopeful of doubling its turnover in the next 12-month period. During the year ending December 31, 2006, Ford India is hopeful of generating a turnover of Rs 2,500 crore.

Speaking to Business Line at the conclusion of a function held here on Thursday to mark the launch of the Ford Fiesta, Mr Sivaramakrishnan said in 2004, the company sold around 27,000 vehicle units in the domestic market across variant offerings, that included the Ikon, Endeavour and the Mondeo.

He said Ford India would continue to focus on the mid-sized car segment, which has been growing at around 25-26 per cent per annum, or three-four times at the rate at which the domestic automobile market has been growing.

"At present, the size of the mid-sized car segment has been pegged at 2,00,000 units. By 2007, we expect it to account for 32-35 per cent of the overall domestic car market of one million units," he said, adding that Ford India was "bullish" on its market share in its targeted segment. Also, there were no firm plans for making a foray into the small car segment, at least for the time being.

According to him, while the Ford Ikon has been positioned as an "entry-level aspirational car", the Fiesta has been positioned as a car that would meet the "style, status and aspirations" of its patrons. As such, it has been priced "aggressively" at Rs 5.59 lakh at the lower end.

Despite the rise in input costs, the company was keen to hold on to present prices "for as long as possible". Besides the domestic market, Ford India exports vehicle kits to countries such as China, South Africa and Mexico, Mr Sivaramakrishnan said.

Established in 1995, Ford India has invested $545 million in its Indian operations, with its manufacturing unit located at Maraimalai Nagar, near Chennai. The company's production facility has been designed to manufacture 1-lakh vehicle units per annum.

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