Ford pins Rs 6 lakh tag to Fusion

Ford India today announced the price of its latest 'cross-over' model in India, Ford Fusion, at Rs 6.2 lakh (ex-Delhi showroom). With this announcement, the US car maker has clearly got into the volume game act in India.

Earlier the company had cut the price of its blockbuster model, Ford Ikon to Rs 4.7 lakh. The price cut in Ikon had fetched rich dividends in term of volumes.

The pricing of its sports utility vehicle, Ford Endeavour, between Rs 12 lakh and Rs 14 lakh has also placed it as one of the top selling models in the true SUV class.

Ford India, vice-president (sales, service and marketing), Vinay Piparsania, said, "We are in the volume business but it is also a fact that we create niche segments in a crowded market and try and achieve leadership position. This is true since the Ikon was launched in 1999."

Ford Fusion has been positioned as an urban utility vehicle, the first of its kind in India, which takes the best of an SUV, sedan and a compact car.

Fusion plus, which is the premium version of the model is priced at Rs 6.95 lakh, ex-Delhi showroom. According to an automobile analyst, the entry level model of Fusion at Rs 6.2 lakh is expected to give a substantial psychological advantage for reporting good sales numbers.

The Fusion is capable of challenging a host of existing models in the country including the Ford Ikon itself, the analyst added.

The fusion would now take on high-end sedans like Maruti Vxi (Rs 5.5 lakh), Accent (Rs 5-7.5 lakh), Opel Corsa (Rs 4.8-6 lakh). Premium hatch backs like Hyundai Getz (Rs 4.5-5 lakh), Fiat Palio (Rs 3.7-4.5 lakh), Tata's Marina (Rs 4.5-5 lakh) are also possible targets to the new Ford cross-over.

A Delhi-based automobile analyst said that ideally Fusion could have priced below Rs 6 lakh, which would have been a real killer price capable of returning good numbers in sales.

"Many profitable automobile firms world-over are not in the volumes game. Profitability need not be directly linked to volumes," Piparsania added.

Ford is eyeing the Fusion to be next car for the 20-lakh odd compact car owners in India and also the 6 lakh odd SUV/MUV owners. "Even a conversion rate of 20 per cent will fetch a huge numbers in this space," Piparsania said.

To start with Ford is planning a monthly production of 500 units and will ramp it up as demand picks up. Encouraged by the surge in Ikon sales in recent months, the company stated its second shift production at the Maraimalai Nagar plant in Tamil Nadu.

Ford India executives said that if demand exceeds expectation the company will look at the third shift too.

Calendar year 2005 is expected to be the company's first year of profit, since it arrived in India in 1995.