Ford’s Indian unit will begin selling its Fusion mid-size vehicle from December, hoping to attract buyers of both sedans and utility vehicles in a market expected to touch nearly a million units this year.
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The Indian version of the Fusion [a variant of Ford Europe’s Fiesta hatchback line] is a blend of small hatchback and compact sports utility vehicle and is powered by a 1.6 litre petrol engine. Its base price ex-showroom is 620,000 rupees ($US13,650) in Delhi, company officials told Reuters. A premium version is priced at 695,000 rupees.
According to the report, Ford said it hoped to attract urban Indian buyers looking for both style and sturdy outdoor-oriented features and are currently forced to choose between a mid-size sedan and an SUV. It said it expected to sell about 500 to 1,000 Fusions a month.
The news agency noted that Ford began selling cars in India in 1996 and assembles the [Fiesta hatchback-based] Ikon sedan and the Endeavour sports utility vehicle at its plant on the outskirts of the southern Indian city of Madras. It also imports the fully built Mondeo saloon from Europe.
“There is a whole pool of people there that are moving up that would be looking for the luxury of a mid-size sedan and the robustness and space of utility vehicles,” David Friedman, Ford India’s managing director, told Reuters.
Ford reportedly hopes the Fusion will lure potential buyers of sedans like Maruti Suzuki’s Baleno, Honda’s City, Hyundai’s Accent and SUVs like the Mahindra Scorpio and Toyota Qualis, all priced between 600,000 and 800,000 rupees.
The mid-size segment, which includes some low-price sedans, makes up about 20 percent of all new car sales, Reuters said, adding that India’s market for cars, vans and utility vehicles combined is expected to expand 15-20% in the 2004/05 business year to over a million units from 900,752 in 2003/04.
The Fusion will be made at Ford’s Madras plant with 70% local content with its engine assembled in India under contract by Hindustan Motors, the report added.
Friedman reportedly said the company expected to clock revenues of over 10 billion rupees in 2004 and post its first annual net profit. He said Ford India expected to wipe out its accumulated losses of about two billion rupees in the next three-five years.
Ford expects to sell 27,000 Ikons, 2,000 units of the Endeavour, which it launched last December, and about 120 Mondeos in 2004, Reuters said, noting that the brand has only a 4.5% share of the Indian passenger vehicle industry sales because it is absent from the mini and compact car segments, that account for nearly 80% of sales.
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Ford Motor Company chief operating officer Jim Padilla and Ford India president David Friedman show off an Indian made Fusion at the assembly plant in Chennai |
