Ford has already raised the price of its sports utility vehicle (SUV) Endeavour by Rs 30,000 after the recent hike in excise duty on SUVs. Prices of other models like Ikon, Fusion and Fiesta have not been raised so far.
Factors like rising input costs, tax structures as well as market reactions will be taken into account while going for a price revision in September for the Fiesta S, said Nigel E Wark, executive director, marketing, sales and services, Ford India here at the launch of the vehicle in Kolkata.
He did not hint at a price rise. The diesel variant of the Fiesta S was priced between Rs 710,000 to Rs 814,000, and petrol version between Rs627,000 to Rs 722,000, ex-showroom at Kolkata. The price of 1.4ZXI diesel Fiesta S has remained unchanged from its predecessor, Wark said.
Fuel, inflation, interest rates and price restructuring because of taxation had an impact on the market, he admitted.
However, there is momentum in the market and the new sporty variant has been stylised taking cues from European designs, Wark added. The new car was designed by Ford Australia and customised to suit Indian conditions like increased maneuvariability at low speeds as well driving in flooded streets.
Ford India currently sources nearly 80 per cent of components for its cars from local suppliers and with the new engine plant at Chennai, the local content could go up to 90 per cent.
It will initially make 60,000 petrol and diesel engines at its Chennai plant and eventually take up the capacity to 250,000 engines.
As for its small car scheduled for launch in 2010, it confirmed that the car will not be priced at the lowest end of the scale. There was room in the market for Ford, Wark claimed.
"We welcome the Nano and believe its major target segment would be the two and three wheeler market. It will create interesting dynamics in the Indian car market", he added.
Ford was investing $500 million on expansion of its Chennai facility for the engine and assembly units of its small car. The company sold 12,800 vehicles across categories between January to May 2008.
