Ford to Display Its Small Car This Week

Ford Motor Company will be unveiling its much-awaited ‘small car’ in this week. This will happen as soon as in two-three days.

The US car major had launched the Ford Fiesta sedan in 2005. Since then, Ford India has not had a new product launch in India, while the company has continued to upgrade its existing product line in the country.

Ford India will launch its small car, code named B517 in March 2010. This car will be launched in an attempt to secure its presence in the country. The small car, which is expected to compete with the Hyundai i20 and the Suzuki Swift, was also showcased to its dealers in Chennai recently.

This small car will be a four-door hatchback that will be powered by an indigenous diesel and petrol engine. The engine of the small car will be manufactured at its Chennai plant.

Ford India has invested around $500 million (Rs 2,400 crore) to double the current capacity by one lakh cars and 2.5 lakh engines. Recently, the company has seen an increase in primary sales (sales from company to dealers), with the Endeavour and the Ikon maintaining their leadership positions in the premium SUV segment and mid-size segment, respectively. Ford India’s existing line-up includes the Ikon, the Fiesta, the Fusion and the hulky Sports Utility Vehicle (SUV), Endeavour.

The US car major is keen to accelerate focus on emerging markets such as China and India with fuel-efficient products. Globally, consumers are seen to be moving towards fuel-efficient small cars and Ford India is currently offers cars in mid-size segments and SUV segments.

The new Ford Fiesta 1.6S launched in India has now emerged as the ‘segment-winner’ with competitors having to spruce up their act. The model has lived up to its expectations with various car magazines and critics voting unanimously for the car.



“If you are choosing between these two cars to have the perfect ally for spirited motoring, then go for the Fiesta” – BS motoring, Dec 2008.

“Ford has created one of the most involving driver’s cars in India” – TopGear, Nov 2008

“That’s good value for the Fiesta S as you get a super competent car that gives you the best of both worlds – sport & comfort” – Times drive, June 2008.

The new Ford Fiesta certainly flaunts what it has got! You can experience a superb driving experience which redefines the meaning of world-class driving experience. This sedan comes loaded with a host of features that is sure to please the owner. Ford Fiesta 1.6S is the sports variant of the car that was launched last year. It accentuates the bumper treatments, sports body kit, new rear spoiler, 5-spoke 15” alloy wheel and much more. Its new suspension system offers higher level of machine and driver interaction for excellent maneuverability. On the whole, the car offers superb handling and stable on-road driving experience. The interiors of the car have been refurbished with ebony and jasper blue environment that expresses cool and refreshing look. Moreover, the car also sports a honeycomb instrument cluster, leather wrapped steering wheel that finishes with superb aluminum finish gears.

AutoCar India tags the Ford model as one of the best in its segment. “The best driver’s car in its class” – AutoCar India, Sep 2008

On the price front, the new Ford Fiesta 1.6S is genuinely a luxury car without the hefty price tag. With a price tag starting at Rs. 7 lakh, the car offers a great value for money and the critics offer their kudos and accolades to the car on that front.

“A great buy if you love driving and worth every rupee” – WhatCar India, July 2008.

“This is one of the best six figure driver’s cars money can buy” – AutoCar India, July 2008.

If you are looking for a good and reliable sedan that offers great mileage with best driving experience, the new Ford Fiesta 1.6S is surely a serious contender!

New Ford Ikon receives overwhelming response in India

The newly launched Ford Ikon has received a fantastic response from Indian car enthusiasts across the country. Proving its popularity in the segment, the Ikon has already registered over 2000 bookings in less than a month since its launch.

On November 5, Ford India launched its new Ikon range, offering significant improvements ranging from a new advanced DuraTorq TDCi engine with superior fuel efficiency, to stylish and fresh looks drawn from bold European design cues. Complementing this is the class leading warranty and significantly lower cost of ownership that the new Ikon boasts of.

Timothy Tucker, vice president, sales, Ford India added, ``The new Ford Ikon has received terrific reviews across the country and is testament that the company have its fingers strong on the pulse of the customers. Dealers across India are echoing of heightened consumer interest and dealerships such as Kairali Ford, Bhagat Ford, Harpreet Ford, Rajshree Ford and MPL Ford have shown exemplary efforts in registering maximum bookings. The company is confident that the Ford Ikon will continue to post excellent sales results in the coming months as well.``

Ford has introduced the advanced 1.4-litre DuraTorq TDCi engine in the new Ikon to complement the current 1.3-litre petrol engine, offering consumers the choice of two of the best power trains, tailored to suit Indian driving conditions.

The new Ford Ikon has real appeal for those looking to complement their lifestyle with an energetic, stylish, affordable mid-size sedan.

Ford India is a wholly-owned subsidiary of Ford Motor Company, a global automotive industry leader. Ford India manufactures and distributes automobiles made at its modern integrated manufacturing facility, at Maraimalai Nagar, near Chennai. With more than 2100 employees, the company`s models include Ikon, Fusion, Endeavour and Fiesta.

Ford India to market new fuel-efficient vehicles

Ford India has announced plans to market a new line of fuel-efficient vehicles.

The cars, which will be available for sale in 2010, are fueled by compressed natural gas and liquified petroleum.

Ford India currently distributes Ikon, Fusion and Fiesta cars, as well as the Endeavor sports-utility vehicle. However, the worldwide economic recession caused sales to plummet by 22.5 per cent from April-September 2008. Nevertheless, the company still managed to ship a total of 4,062 cars and SUVs during the troubled period.

"The credit crunch and the lack of confidence has affected [us] in the short-term," admitted Michael Boneham, president of Ford India. According to Boneham, the company expected 2009 to be a tough year for the industry with a single-digit growth (rate). However, the optimistic president projected that sales would increase when Ford launched its fuel-efficient small car in 2010.

Ford will undoubtedly face stiff competition from a number of companies vying to dominate the lucrative Indian automotive market. For example, Toyota is reportedly developing a new fuel-efficient vehicle expected to retail at $5,000. In addition, Tata is slated to launch its affordable $2,500 Nano sometime in the near future.

Ford sets early 2010 target to launch small car in India

Armed with a $500-mn investment outlay, Ford Motors has set early 2010 as the target to launch a small car in India, start its new engine-making unit and double the assembly line capacity, a top official said here.

The US-based giant will also unveil its refurbished Ikon by next month to expand its range of offerings in the country that includes Fusion, Endeavour and Fiesta, said Michael Boneham, managing director and president of Ford India.

"Ford now has a presence in only 30 percent of India's automobile market segments. We are entering other segments too. These are exciting times," Boneham told IANS at the company's factory at Maramalai Nagar on the outskirts of the Tamil Nadu capital.

"We are also commissioning a new engine manufacturing unit. It will serve both the domestic and global markets. It will have the flexibility to produce diesel and petrol engines. The idea is to go for higher localisation in the months to come."

Speaking about the small car project, the Ford official said it was being designed and developed specifically for India by a global team. "It will meet the needs of Indian conditions - like water wading, air-conditioning and emission standards."



While declining to divulge any further information on the project, Boneham said it will have a sub-1.2-litre engine with a length of no more than four metres to avoid higher taxes. "It will be very, very competitive in that segment."

Ford's first offering here was the "Josh machine" Ikon that rolled out in 1999 from this city, often called the Detroit of India for hosting auto companies like Hyundai, BMW, Mitsubishi, Ashok Leyland, Caterpillar, TVS, Tafe and Same.

Nissan and Daimler are among some global players that have definite plans to set up their units in this city.

Boneham said the company's integrated engine plant for 250,000 units per annum will be its first outside Europe and will make low-displacement engines for cars to be rolled out of its Indian plant for both domestic market and exports.

He said the existing $26-mn diesel engine assembly plant, with a capacity for 50,000 diesel and 10,000 petrol engines for Fiesta and Fusion, would be eventually integrated with the new plant.

The company has the capacity to assemble some 100,000 cars per year at its facility here, which will be doubled to 200,000.

Queried about the future of its tie up with the Indore-based Avtec that supplies 1.6 litre petrol engines, Boneham said: "We will continue to work with them. We will look at sourcing components from Avtec."

He also sought to dispel the perception that the cost of ownership of Ford cars was high compared with those offered by Japanese and South Korean companies, as several factors like fuel efficiency and servicing were also involved.

"As per our study, in some parts we are costlier and in some others we are cheaper. Overall, we are very competitive in this area. We are working to lower component costs further. Our diesel engine is more fuel efficient than many others," he said.

"High localisation is intended to achieve that. We are extremely quality conscious. Today, we can say we are far more satisfied and comfortable with our vendors."

Ford unleashes new Fiesta

Ford seems to have finally woken up from it's Fiesta siesta. The car had very bland, non-offensive styling and did not bowl over too many people with its design. Until now. Take one look at the face-lifted Fiesta and you will realise that this car could resurrect Ford's success in India.

The aggressive triangulated lower grille with the smart black insert and new headlamps are reminiscent of the 'kinetic design' ideology that prevails in Fords across our shores like the Mondeo and Focus. Interiors have been revamped too with new instrument clusters and the top-of-the-line luxurious SXI now gets soft leather seats and a mahogany central console as standard. Production of the 1.4 litre petrol has been discontinued, leaving only the 1.6 DuraTec petrol 1.4 DuraTorq diesel.

Ford claims that the new 1.6 petrol engine with its re-mapped ECU gives similar fuel consumption figures to the old 1.4 engine. The petrol models available now are the 1.6 EXI, 1.6 ZXI and the 1.6 SXI while the fuel-efficiency minded consumer can choose from the diesel 1.4 EXI, 1.4 ZXI and the 1.4 SXI TDCi variants.Safety has become a high priority with the new Fiesta. The SXI versions have dual airbags and inertia reel seat belts as standard. ABS and EBD (Electronic Brake-force Distribution) also feature on these Fiestas.And there's an all-new 'sports' model – the 1.6 S - with tweaked suspension which delivers better feedback and control.

Ford seems to have got the suspension set up right since the car doesn't shock you over the bumps. Sporty elements like a spoiler, body kit, chrome-tipped exhaust and cooler 15-inch alloys also come standard on the 1.6 S. Low-profile 195//55 R15 tyres augment the sporty nature of the car. All in all, finally a desirable Fiesta has morphed into being. Given that the Indian consumer is getting more picky about style and driving dynamics, the new Fiesta seems like a sure winner in this increasingly competitive segment.

Ford plans to roll out small car by 2010

WITH US automaker Ford’s Indian subsidiary announcing its intention to launch a small car in India by 2010, the Indian small car market is set to witness an explosion of small cars. Carmakers are racing to get products on the road by 2010, with global auto giants like Honda, Nissan, Daimler Chrysler, General Motors and home- grown Bajaj Auto all announcing plans to launch their small car by 2010. Tata Motors’ ultra low- cost ‘one lakh rupee car’ Nano, unveiled in January this year, has ignited competition in this sector, hitherto dominated by Maruti Suzuki.

By 2010, the demand for cars is expected to almost double to two million a year. Said Michael Boneham, managing director and president ,Ford India, “The small car segment has 75 percent share on the Indian market, and when we launch the small car, that’s when the real volumes will come in.” This shift in Ford’s strategy is touted by analysts as a global business strategy adopted by other global automakers like Nissan, Renault, Toyota and Honda. All these have acknowledged the merit and scope of producing an ultra low- cost car (ULC). Besides this, looking at factors like fuel economy and volumes, global auto companies are under pressure to target this growing segment, analysts say. Ford’s small car will most 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’s new engine manufacturing facility will be set up in 2009- 10 with a capacity of 2,50,000 units per year. “The plant will fulfill the entire domestic demand and will also cater to the needs for ford in the Asia Pacific region,” said Boneham. Ford currently produces the Fiesta, Ikon and Fusion sedans, and the Endeavour SUV in India. The company had recently shut plants and cut workforce in North America amid financial losses. It has announced plans to invest $500 million in India to expand production capacity and make the new small car.

Ford is also exploring the possibility of introducing eco- friendly vehicles that run on alternative fuels or hybrid cars in the Indian market. According to the McKinsey Global Institute, consumers in the Rs 90,000 to Rs 2- lakh- a- year salary bracket will form the largest portion of India’s income pyramid in 10 years. These form the target for Tata’s Nano. Now, even global auto makers are targeting this segment. Toyota Kirloskar Motor (TKM), a joint venture between Japan’s Toyota Motor Corp. and India’s Kirloskar Group, also plans to invest Rs 1,400 crore on anew plant in Bengaluru, from where it will roll out its small car in abid to tap the largest segment of the car market in India. Said Vaishali Jajoo, auto analyst, Angel Broking, “Growth for global auto markets in developed markets is in single digits, whereas the small car market is projected to show a double digit growth in the coming five years. Besides this the (small car) market contributes over 50 per cent to the overall car sales in the country. Factors like cost efficiency are also a big push for global biggies.” The move has also set off a flurry of activity among component vendors, with most original equipment manufacturers (OEMs) gearing up their volumes for small cars to be launched by Renault- Nissan, Bajaj, Honda, General Motors and others.

Price gap between SX4 and Honda City has narrowed

Maruti Suzuki officials refused to comment on whether they would bring down the price or offer discounts on the SX4. “The price gap was not much in any case and the SX4 has gained popularity because of its strength as a good product,” commented a Maruti official who did not wish to be identified.

The two Japanese companies have been locked in a tough battle to increase their share of the fast- growing mid- segment of the Indian car market. Ford Fiesta and Hyundai’s Verna have also been notching up strong growth in this category even as Maruti Suzuki launched the Dzire sedan recently in order to add to the competition.

The mid- size segment of the Indian car market registered an overall growth of 14.61 per cent for the financial year ended March, 31 2008 at 2,25,719 units, up from 1,96,942 units in 2006- 07. According to industry body Society of India Automobile Manufacturers (SIAM), Maruti Suzuki emerged the leader in the segment during 2007- 08 with a market share of 21.85 per cent, a huge jump from the fourth spot that it held in 2006- 07 with a market share of 15.08 per cent. The company sold 49,335 units in 2007- 08, compared to 29,697 units in 2006- 07 to clock a growth of 66.13 per cent.

Maruti succeeded in pushing the once undisputed market leader Honda to the second slot reducing its market share to 17.95 per cent for the financial year ended March 31, 2008 from 20.55 per cent during financial year 2006- 07.