Reference Auto

The mid-sized segment is also getting fiercely competitive with Toyota bringing in its Etios and Hyundai launching a cheaper version of the Accent, and in order to stay in the race, Ford India has launched a new variant of the Fiesta, named Fiesta Classic, at a lower price.

The new Fiesta will come in both petrol and diesel versions. The petrol variant with a 1.6-litre engine is set to hit the roads now and be priced at Rs 5.58 lakh, while the diesel car, that comes with a 1.4-litre engine, will carry a price tag of Rs 6.05 lakh (ex-showroom Chennai).

The Ford Fiesta Classic would be available in three variants: the LXI, CLXI and SXI.

“Fiesta Classic represents the appropriate product in the mid-sized segment,” Ford Motor India managing director Michael Boneham averred after unveiling the car.

He, however, clarified that the new Fiesta Classic will be substantially different from the Global Fiesta, which the car giant is expected to roll out around July-August.

Ford India executive director Nigel E Wark informed that with the lowering of the Fiesta price, none of the features have been done away with. “This product is focused on (car) boot lovers,” he added.

Ford rolled out the Fiesta six years ago and has been manufacturing the car at its facility at Maraimalai Nagar, near Chennai. The plant is expected to reach full capacity soon, as a double shift operates at 1.50 lakh units.

On the exports front, Boneham said the company will target 50 markets this year. Figo, the hatchback model, is being exported to South Africa. “And this year, it will be exported to Mexico, North Africa and the Carribbean countries,” he said.

Ford has seen a huge success with the Figo, the sales of which touched almost 80,000 in just a year. It revved up Ford India’s sales by 184 per cent in 2010. So, Ford could be planning to get into the small cars market and is most likely to line up a few cars for the segment.

Ford, in fact, is believed to be readying eight products in the next four to five years and many of these could be in the small and mid category, which forms almost 80 per cent of India’s car sales.

Moreover, a higher presence in the small cars segment will not only jack up Ford’s volumes but also earnings will most likely head for the sky as it is the most lucrative segment in India.

Like any other category, demand for mid-sized sedans has been surging ahead and auto majors have seen their numbers rev up substantially in the segment.

On the other hand, Ford’s sales in the category has been sliding and one of the reasons is that it has discontinued the Ikon sedan. So, by bringing in the Fiesta Classic, it is trying to give a fillip to its prospects in the segment.

The small and mid segments are price-sensitive markets and the volume of sales is very high. Ford’s move to whittle down the price of its Fiesta (Fiesta Classic) without compromising its features is a very smart move indeed to accelerate sales in the category.