Ford
appears to be considering entering the large-volume Indian small car segment for
the first time, the Financial Express reported in its online edition.

This was because Ford India Ltd needs a second volume car after the Ikon [a
small sedan based on the European Fiesta hatchback] to break even, the paper
said.

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“While Ford does not reveal future product plans, it is safe to assume
that we will introduce additional models in India, including those in the higher
volume categories,” a senior company official told the Financial Express.

Market
Profile –


India

The newspaper added that, according to local analysts, this signalled Ford’s
intention to contest the small car segment.

Until now, Ford India, whose managing director is former Ford Australia large
car assembly plant manager Phil Spender, has said that it doesn’t plan
to enter the currently cluttered small car segment, according to the Financial
Express.

FIL has already achieved cash break-even with the mid-sized [in Indian market
terms] Ikon, the paper added.

Ford is soon to launch the European designed and built Mondeo into India’s
newly created D-segment which will be a small volume category, the Financial
Express said. The paper quoted the Ford official saying that the segment is
expected to generate around 5,000-6,000 sales annually.

The official also told the paper that, though FIL had decided to launch the
Mondeo, it was not expected to be a large-volume car which would help the company
achieve profit break-even. However, the Mondeo was a high image car as it would
bring the latest and the best from Ford worldwide to the Indian market.

Starting with fully-imported Mondeos allows for reasonable initial investment
and provides the opportunity to participate in the segment while assessing its
growth potential, Ford’s official told the Financial Express.

A decision on assembling the car in India later would depend on the growth
of the D-segment.






To view related research reports, please follow the links
below:-


The
world’s car manufacturers: A financial and operating review

Automotive
b2b – Strategic threats and opportunities in the automotive supply chain





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