Ford launches EcoSport at starting price of `5.59 lakh
With the EcoSport, Ford will look to take advantage of growth in the utility vehicle segment
New Delhi: Ford India Pvt. Ltd introduced the EcoSport compact sports utility vehicle (SUV) on Wednesday in a bid to take advantage of the popularity of such models in the country and give the company the kind of boost that the Duster has given Renault India Pvt. Ltd.
add_main_imageThe 1.5-litre petrol base model starts at ₹ 5.59 lakh, while the 1.5-litre diesel version starts at ₹ 6.69 lakh. The model equipped with the advanced 1-litre EcoBoost engine starts at ₹ 7.89 lakh. The 1.5-litre petrol-fuelled automatic is priced at ₹ 8.44 lakh. The prices are ex-showroom Delhi.
The vehicle will compete with entry level sedans such as Maruti Suzuki India Ltd’s DZire and premium hatchbacks such as Hyundai Motor India Ltd’s i20, Volkswagen India Pvt. Ltd’s Polo besides Renault’s Duster, also a compact SUV.NextMAds
Ford’s pricing strategy for the EcoSport will encourage buyers, said Anil Sharma, a senior analyst at Gurgaon-based IHS Automotive, a sector specific consultancy.
“They have nailed it,” he said. “I was expecting it (the base version) to be priced at ₹ 6 lakh.”
Ford has the opportunity to disrupt the market with the model, he said.
“While the pricing is very competitive, they also have the first mover’s advantage. I expect the rivals in this pricing range to cede market share,” Sharma said.
The local unit of US-based Ford Motor Co. is pinning its hopes on the EcoSport in a market where domestic sales declined 16.66% to 77,225 in the last fiscal year. In the same period, passenger vehicle sales grew 2.15% to 2,686,429 units.
However, with the EcoSport, Ford will look to take advantage of the growth in the utility vehicle segment—52.2% to 553,660 units.sixthMAds
The company expects this segment to grow fivefold by 2020, said Joginder Singh, president and managing director of Ford’s India unit. “We will be entering a whole new segment like the way we did with the Figo,” he said. “Just like the Figo, it will be a big volume generator for us. We are banking on this car. We believe it will be a game-changer not only for us, but for the industry.”
Singh refused to give sales and production forecasts for the car. In March 2010, the company had introduced its first small car, the Figo, which imparted some momentum to Ford’s sales figures. However, that slowed with rivals launching new cars.
In its 18 years in India, Ford has reported profit in just one, according to the company’s financial reports obtained from the Registrar of Companies (RoC). In 2011-12, it posted a loss of ₹ 140 crore.
Ford has been in an investment phase since the year ended March 2008, expanding capacity at its Chennai plant and investing an additional ₹ 4,000 crore in its new factory at Sanand, Gujarat. It has invested $142 million (around ₹ 850 crore) on manufacturing the EcoSport in Chennai.
In the last fiscal, Ford had a market share of 3% in India, according to the Society of Indian Automobile Manufacturers.
“We are on a profitable growth strategy. We will be launching products with global platforms. We have to make sure that we are careful about the changing needs of Indian people,” Singh said. “We would want to have a full range of vehicles with us.”
The company’s lack of offerings in the mass volume segment is often seen as a reason for its lacklustre sales performance.
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First Published:26 Jun 2013, 02:07 PM IST
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