US carmaker Ford, which is investing $500 million in its Indian operation, today said the company's expansion plans in the country are on track despite a global slump and economic downturn.
"The current world economy is creating some tough times for car business as a total. Credit crunch and the lack of confidence among consumers and banks have created short-term impact but our Indian plans are on track," Ford India President Michael Boneham told reporters here.
Earlier this year, the company had announced an investment of $500 million in India for a new engine and transmission plant in Chennai and development of a small car to be launched by 2010.
"Ford is confident that we will be a big part here. Our capacity enhancement programme and the small car project will continue as announced earlier," he said.
Ford would launch a new small car in India in 2010, he said, adding that the company was expecting a "great growth of market share" after the launch.
Ford India today launched the new petrol and diesel variant of its entry-level sedan-- Ikon, priced at Rs 4.59 lakh and Rs 5.19 lakh (ex-showroom, Delhi), respectively.
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The diesel variant of the new Ikon would come with a 1.4 litre DuraTorq TDCi engine, while the petrol variant would be available with a 1.3 litre RoCam engine.
"We expect the next year to be a tough one for the industry with a single digit growth. Our company is also expecting the same but we expect the new Ikon playing a key role to tide through the tough phase," Boneham said.
The sales in the current financial year would be flat compared to last fiscal, he added.