Joginder Singh, president, Ford India said the company
is betting big on the new EcoSport to drive it to profitability in India
and deliver returns on the USD 2 billion dollars, the global car
company has committed to this market.
Ford has priced its new sport
utility vehicle (SUV) Ecosport at a very aggressive Rs 5.59 lakhs. At
this price, not only has Ford created a new entry level SUV category but
it will also compete with the likes of the Maruti Dzire and the Hyundai
i20.
Also Read: Ford bets on EcoSport to ride mini-SUV boom in India
The
EcoSport will not be impacted by the additional excise duty on SUV, and
in fact is a beneficiary of the small car duty as it is under-4 metre
in length.
Singh said, we expect our customers to come from a
whole variety of segments. "Existing sedan owners, people who own
hatchbacks, people who own small SUVs, people who own big SUVs, they
might think that this is the right size SUV for their lifestyle," he
added.
Below are the excerpts of his interview with CNBC-TV18's Shereen Bhan
Q: What are your plans for India?
A:
The interesting thing about India is that there are new segments
emerging all the time. We are in the sub 4 metre category it is the
right SUV.
What we have announced today was the icing on the
cake that we were able to offer such a compelling price proposition.
This is what I call a 'Dhamaka' that we have been able to combine these
things so well.
Q: You
have been very aggressively been able to price this product. How much of
the design specifications for instance and I pick up on the point that
you just made about this being sub four metres because that will ensure
that you get the small car benefits, that will also ensure that you
don't fall now under the governments SUV category which means you don't
have to pay the higher excise duty. How much of the design specification
was driven by the eventual price that you wanted to offer?
A:
There is more than just a design specification. Ofcourse we have to
design what the needs of the market are when we think there is a strong
demand in the sub four metre category.
However, it's more than
that, the reason why we have been able to offer such a great proposition
to the customer. First of all we have the advantage of scale. The
EcoSport product is being produced in our factory in Chennai but it will
satisfy customers not only in the Indian market but also be satisfying
customers in the export market as well.
The second factor in
addition to the design efficiency that we have is the very satisfactory
level of localization we have in this product.
We have been
engaged in this localization strategy over a period of time, to make
sure that we take advantage of our global suppliers that are helping
Ford worldwide. They are also helping us in India in Chennai as well as
in the upcoming factory in Sanand.
Q:
So, who are you going to be competing against because the assumption
was this is going to take on the Renault Duster which is an entirely
different category and it's an entirely different price category as
well. So, who do you believe is going to be your competitor?
A:
It is a new space. We expect our customers to come from a whole variety
of segments. So, existing sedan owners, people who own hatchbacks,
people who own small SUVs, people who own big SUVs, they might think
that this is the right size SUV for their lifestyle. Therefore, our draw
for customers is going to be from a whole range.
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Jumat, 14 Maret 2014
EcoSport to drive Ford's profitability in India: Singh
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