Ford may up Ikon output as sales surge

Ford India is planning a second shift production for its Ikon following a surge in sales of the C-segment car in the first half of the current calendar year. A final decision will, however, be taken by this month-end.

"We had projected a 20 per cent growth this year. But now it appears we are well ahead of this target," said Vinay K Piparsania, vice-president, marketing and external affairs.

"Second half sales are usually slower and we also have to see what the Union Budget holds for the market. So July will be the month to watch before a decision is taken," he said.

Earlier, Ford was planning a second shift only with the launch of its new vehicle, scheduled later this year.

Ford sold 12,082 Ikons in the domestic market in the first half, an over 49 per cent rise over the 8,089 units sold during the same period last year.

Exports during January-June, too, have held steady at 14,587 Ikon kits (14,516 kits). The 1.3-litre Ford Flair has captured the market, accounting for 60 per cent of the sales this year.

Ford has already moved the production line of its sport utility vehicle (SUV) Endeavour, which it imports as semi-knocked down units, into the second shift from July 1.

This has raised the production of Endeavour from 150-170 units a month to 200 units a month.

A second shift will entail an increase in manpower on the production floor, streamlining supplier capacities and strengthening the company's distribution network.

The company is also increasing its dealer network to 105 (90 earlier) across 86 cities (71 earlier).

In a two-shift system, Ford will have a full capacity to manufacture 100,000 vehicles a year. If Ford is able to sustain the 50 per cent growth seen in the first half, total sales could cross 60,000 units.

With the full capacity of a single shift at 50,000, this could prove too much of a stretch for Ford on its current production system.

While the company has been cagey about its new launch, it has made it clear that the vehicle will be manufactured in India and will take Ford into a segment that it is not currently present.

One name floating around is its mid-sized sedan - Fusion.

Interestingly, the company's luxury sedan, Mondeo, currently imported as a completely built unit, has lost some ground in the last six months with new D segment entrants.

Mondeo sales slipped to 54 units between January and June from 88 during the year-ago period.

The company is also exploring a second round of indeginisation of the SUV, which already has a 20 per cent localisation.

North and west account for 70 per cent of the vehicle's sales, while south accounts for the balance.