Ford Motor Says On Track To Launch Small Car In India By 2010
06-19-2008, 10:55 PM
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Ford Motor Says On Track To Launch Small Car In India By 2010
Ford Motor Co. (F) said Thursday it is on track to introduce its first small car in India by early 2010 to enter a segment that comprises the bulk of cars sold in the country.
The Detroit automaker will also introduce a range of new vehicles in the next six-eight months to reverse declining sales in India, said Michael Boneham, the managing director and president of Ford's local unit.
"It will be a new car in a new segment," Boneham said. "It will be engineered for Indian conditions."
A small car will probably help Ford compete with Suzuki Motor Corp., Hyundai Motor Co. and other automakers in India where car sales are forecast to grow threefold to 3 million units by 2015.
Small cars having 0.8-liter to 1.6-liter engines make up three-fourths of the cars sold in this market. That has led General Motors Corp., Honda Motor Co. and other automakers to sell such vehicles, or announce plans to enter this segment.
Ford's small car will likely be sold with diesel and gasoline engine options, Boneham said on the sidelines of a news conference to launch an upgraded range of Fiesta sedan cars.
Ford currently produces the Fiesta, Ikon and Fusion cars, and Endeavour sport- utility vehicle in India.
Ford, which has shut plants and cut workforce in North America amid financial losses, announced plans in January to invest $500 million in India to expand production capacity and make the new small car.
Annual capacity at its factory in the southern city of Chennai will be raised to 250,000 engines and 200,000 cars over the next two years from the current 50, 000 engines and 100,000 cars.
Ford India's sales fell 19% to 33,880 vehicles in the fiscal year ended March 31 because of intensifying competition in this market. That compares with a 12% growth in sales of all cars and sport-utility vehicles at about 1.5 million units.
Boneham said Ford is studying introducing eco-friendly vehicles that run on alternative fuels or hybrid cars in the Indian market.
"We are examining all options," he said. "If oil prices continue to increase, it is sensible for us to look at all options."
The Detroit automaker will also introduce a range of new vehicles in the next six-eight months to reverse declining sales in India, said Michael Boneham, the managing director and president of Ford's local unit.
"It will be a new car in a new segment," Boneham said. "It will be engineered for Indian conditions."
A small car will probably help Ford compete with Suzuki Motor Corp., Hyundai Motor Co. and other automakers in India where car sales are forecast to grow threefold to 3 million units by 2015.
Small cars having 0.8-liter to 1.6-liter engines make up three-fourths of the cars sold in this market. That has led General Motors Corp., Honda Motor Co. and other automakers to sell such vehicles, or announce plans to enter this segment.
Ford's small car will likely be sold with diesel and gasoline engine options, Boneham said on the sidelines of a news conference to launch an upgraded range of Fiesta sedan cars.
Ford currently produces the Fiesta, Ikon and Fusion cars, and Endeavour sport- utility vehicle in India.
Ford, which has shut plants and cut workforce in North America amid financial losses, announced plans in January to invest $500 million in India to expand production capacity and make the new small car.
Annual capacity at its factory in the southern city of Chennai will be raised to 250,000 engines and 200,000 cars over the next two years from the current 50, 000 engines and 100,000 cars.
Ford India's sales fell 19% to 33,880 vehicles in the fiscal year ended March 31 because of intensifying competition in this market. That compares with a 12% growth in sales of all cars and sport-utility vehicles at about 1.5 million units.
Boneham said Ford is studying introducing eco-friendly vehicles that run on alternative fuels or hybrid cars in the Indian market.
"We are examining all options," he said. "If oil prices continue to increase, it is sensible for us to look at all options."
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