New Delhi: US car maker Ford said on 16 Febryary it will phase out its hatchback ‘Fusion´ from the Indian market, as it gets ready to launch the small car ‘Figo’ next month.
Ahead of its ambitious entry into the compact car segment, the company’s Indian subsidiary Ford India, opened 28 dealerships across 24 cities in the country, with small cities (Tier-II, III) as the main target market growth.
“We will discontinue the Fusion...The car was anyway giving us relatively small volumes,” Ford India managing director and president Michael Boneham told reporters here.
The phasing out is part of a product rationalisation strategy with the firm looking to focus on the compact car segment, which comprises over 70% of the Indian car market that is heading towards the two million mark per year.
He said focus on small cars will be through the Figo which will be launched in March. The commercial production of the car started at the firm’s Chennai plant from 5 February.
Boneham said the company has aggressive plans regarding Figo and it will be competitively priced. The segment is currently ruled by Maruti Suzuki, Hyundai and Tata Motors.
“With its (Figo) launch we are to be benchmarked against key competitors,” Boneham said, adding that the Figo will have 85% of its components sourced locally.
Ahead of the launch, the company has added new dealers to take the total to 164, across 97 cities. “With the openings today, 40% of our dealers are now in secondary markets and we will further increase it,” he said.