Ford pins turnaround hopes on launches

Car maker Ford India is gearing up for the launch of its next vehicle later this year. The company expects the new product to steer it towards the much-awaited turnaround.

Vinay Piparsania, vice-president, marketing and external affairs, Ford India, said, "We are currently cranking out 48,000 vehicles (projection for this calendar year) as against the full capacity of 50,000 in a single shift. "This year's launch will raise our capacity utilisation rate to 100 per cent and will also turn around our profits."

Last year, the company witnessed a 11.74 per cent rise in its production to 42,956 vehicles. Ford India has been expecting to post a cash profit in 2004.

Once the new product is in place and sales pick up, the company can move into its second shift and will be on its way to an installed capacity for one lakh vehicle per annum.

The company is gung-ho about the sales of its medium-sized car, the Ikon. The sales of Ikon have zoomed past the 10,000-mark in the first five months of the this calendar year to 10,273 vehicles, a 52 per cent jump from 6,770 during the same period in 2003. Its exports, however, remained flat at 11,665 (11,642) units.

Meanwhile, Ford India is also enhancing its dealer network from 90 to 105 and presence to 86 cities from 71. A company statement said its sports-utility vehicle, the Endeavour, has carved up a market share of over 40 per cent in the SUV segment, which has seen a lot of new entrants in 2003.

The Endeavour, which was launched six months ago, has already sold 989 units and is expected to top the 1,000-mark this month.