Ford to launch small car in India next year
Thursday, 24 September 2009
NEW DELHI, Sept 23 (AFP): US car giant Ford announced Wednesday it will launch its first small car in India early next year as it targets the country's fast-growing automobile market to boost global sales.
Chief executive officer Alan Mulally unveiled the hatchback Figo-Italian slang for "cool"-in New Delhi.
The firm is aiming at the "sweet spot" of the Indian car market, Mulally said, referring to the fiercely competitive small automobile segment, which accounts for over 70 per cent of new vehicle sales.
"We are going after the heart of the Indian market," he said.
Global vehicle manufacturers, hoping to offset anaemic car sales growth in the developed world, have been steering towards India and China, seeing huge potential in their billion-plus populations.
Ford gave no details of pricing but said the model will be "very competitive." The popular A-Star hatchback produced by market leader Maruti Suzuki of Japan sells for about US$8,000.
In the small car league, Ford will also be up against South Korea's Hyundai and US General Motors as well as against the Nano, the world's cheapest car, produced by India's Tata Group, which sells for $2,000.
The plan to launch the vehicle "shows how serious we are about India," Mulally told reporters.
Ford has invested $500 million to double capacity at its car plant near the southern city of Chennai to manufacture the Figo. The plant will be able to produce 200,000 cars a year, some of which the company aims to export.
"This new car will be a game-changer for our India operations," said Michael Boneham, president of Ford India.
"In addition to supplying the domestic Indian market, we will significantly expand exports of engines and vehicles to additional markets across our Asia Pacific region," he said.
India's car market is growing as the country's economy expands, creating a new prosperous breed of car buyers.
The government expects a quadrupling of auto sales to at least 145 billion dollars by 2016 and has embarked on an ambitious road-building programme to link up the country and ease congestion.
India is one of the world's least penetrated car markets with around seven autos per 1,000 people compared with 850 cars per 1,000 people in the United States, according to industry experts.
Indian car sales have been climbing at double-digit levels. They jumped for a sixth straight month in July, climbing an annual 31 per cent, as new launches and cheaper finance boosted demand.
Chief executive officer Alan Mulally unveiled the hatchback Figo-Italian slang for "cool"-in New Delhi.
The firm is aiming at the "sweet spot" of the Indian car market, Mulally said, referring to the fiercely competitive small automobile segment, which accounts for over 70 per cent of new vehicle sales.
"We are going after the heart of the Indian market," he said.
Global vehicle manufacturers, hoping to offset anaemic car sales growth in the developed world, have been steering towards India and China, seeing huge potential in their billion-plus populations.
Ford gave no details of pricing but said the model will be "very competitive." The popular A-Star hatchback produced by market leader Maruti Suzuki of Japan sells for about US$8,000.
In the small car league, Ford will also be up against South Korea's Hyundai and US General Motors as well as against the Nano, the world's cheapest car, produced by India's Tata Group, which sells for $2,000.
The plan to launch the vehicle "shows how serious we are about India," Mulally told reporters.
Ford has invested $500 million to double capacity at its car plant near the southern city of Chennai to manufacture the Figo. The plant will be able to produce 200,000 cars a year, some of which the company aims to export.
"This new car will be a game-changer for our India operations," said Michael Boneham, president of Ford India.
"In addition to supplying the domestic Indian market, we will significantly expand exports of engines and vehicles to additional markets across our Asia Pacific region," he said.
India's car market is growing as the country's economy expands, creating a new prosperous breed of car buyers.
The government expects a quadrupling of auto sales to at least 145 billion dollars by 2016 and has embarked on an ambitious road-building programme to link up the country and ease congestion.
India is one of the world's least penetrated car markets with around seven autos per 1,000 people compared with 850 cars per 1,000 people in the United States, according to industry experts.
Indian car sales have been climbing at double-digit levels. They jumped for a sixth straight month in July, climbing an annual 31 per cent, as new launches and cheaper finance boosted demand.