No small car for $3000, says Ford

July 18, 2007

Small cars, yes. But not for $3000. This is what the Indian unit of US auto maker Ford Motor Co has clearly stated.

It is a known fact that as much as 80 per cent of the Indian car market comprises small cars, the main player in the segment being Maruti Udyog. Meanwhile, Tata Motors has already begun work on a car that will cost Rs 1 lakh. But, Ford is not thinking on the same lines. Ford bosses have clarified that the company isn’t looking at a $3,000 price tag. According to Ford India Managing Director and President Arvind Mathew, what the company is looking at is a small car but not at that price point.

However, much interest has been generated by the proposed Rs 1 lakh Tata car. Ford India Managing Director Mathew has said that he is just curious as to what this car will look like. Meanwhile, reports said that Ford's global rivals which recently announced plans to sell small cars in India include Honda Motor and Volkswagen AG's Czech unit Skoda Automobilova AS. General Motors began selling a small car in India earlier this year.

Further, Nissan Motor Co has already announced that India’s own Mahindra & Mahindra will likely be its partner for a low-price car project for India.

Ford India, in the meantime, unveiled a diesel variant of Fusion priced at Rs 6.59 lakh (ex-showroom Delhi). The company has saidthat the diesel engine model of its mid-sized Fusion car is aimed at buyers who prefer cars, which run on diesel. Aimed at urban users, the diesel version is expected to be picked up as the fuel-price equation is in favour of diesel.

Ford India's domestic sales rose 45 per cent to 41,797 units in the financial year ended March 31, 2007. It also exported about 20,000 units, as completely-knocked-down kits, during the same period.