The price revision has become critical due to the recent depreciation of the rupee vis-a-vis the US dollar and other increases in cost overheads. The company would also incur additional costs to make its cars Euro-II compliant.
Ford's president and managing director Phil Spender said: "Prices of our cars can only go up. Apart from the weakening of the rupee, we also need to make the cars Euro-II compliant within the next three months."
"Besides, prices have also been kept at artificially low levels because of the price-sensitive nature of the market," he added.
More From This Section
Analysts feel the upward price revision could to an extent take away the advantage that Ford Ikon enjoys in the category.
"The domestic market is extremely price-sensitive and any price revision could have some impact on sales," said an analyst with a leading brokerage.
Currently, the petrol version of Ford Ikon costs between Rs 5.8-7.1 lakh ex-Mumbai, and the popular 1.8 ZXI diesel version costs around Rs 8 lakh, a Ford dealer said.
Spender has also said the company was planning to convert its Rs 1,700-crore manufacturing plant near Chennai into an export hub for the south-east Asia region. He added that Ford would look at exporting cars to countries where exports would be "substantial and sustainable".
Ford India is also awaiting government nod for importing upmarket luxury cars into the country. Subject to the government's approval, Ford is planning to import sports utility vehicles, which will cater only to the needs of a small, niche segment as they are highly expensive.
Currently, Ford manufactures only the Ikon line in India and has discontinued the Ford Escort with which it had begun its operations here.
Ford Ikon has a 26 percent market share in the mid-size segment and it is likely to go up further, said Spender. The company is working towards expanding their sales and service network in India from the present 44 outlets in 39 cities to 66 outlets in 59 cities by the end of the current year.