US carmaker Ford today launched a new version of its sedan Fiesta, the first of eight new global vehicles that the firm plans to introduce in India by 2015, priced up to Rs 10.51 lakh.
The car will be produced at the Chennai facility of the company's Indian arm thus making it the sixth location globally to produce the sedan.
"Ford is not backing away from its commitment to the Indian market. We are here for the long haul and launch this vehicle and reiterate our 'One Ford' vision by bringing the first of the eight new global vehicles to be launched here by 2015," Ford India President and MD Michael Boneham said.
The car will be available in both diesel and petrol options at a price range of Rs 8.31 lakh to Rs 10.51 lakh (ex-showroom Mumbai).
Boneham said the company was upbeat about good sales prospects following the success of the hatchback Figo, which had received good response from the market.
"This month we will be assessing the response. I think the way we have priced the Fiesta, it will be very attractive to our customers," he said when asked about sales target.
More From This Section
"Given the global response to the car, we will be capacity constrained," he added.
While the priority would be the Indian market, the new Fiesta would also be exported to other similar markets as is done with the Figo, he added.
Fiesta, powered by 1.5 litre engine will compete with the likes of Maruti Suzuki SX4, Honda City and Volkswagen Vento.
In order to woo customers, the company is offering a two -year warranty per 1,00,000 kilometres for the new Fiesta, Ford India Executive Director Marketing, Sales and Service, Nigel Wark said.
Driven by the Figo, Ford India has so far achieved over 50% jump in sales in the January-June period with over 60,000 units sold compared to 39,465 units in the same period last year.
Boneham, however, declined to comment on the company's plans for setting up a second plant in India. Ford India has been scouting for location and held talks with the Gujarat government.
The company's Chennai plant has a capacity of two lakh units per year. Ford India is currently investing about Rs 325 crore to expand its engine manufacturing plant to 3.3 lakh units by mid 2012 from the current 2.5 lakh annually.
Commenting on the slowdown in car sales, Boneham said it was expected as the nearly 30% growth witnessed last year was abnormally high.
"It is a bit of easing off as such high growth is unsustainable. We expect the industry to be growing between 12-14%," he said.