The Hindu Business Line : Small car: Ford to leverage emerging markets resources

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Chennai Feb. 19 Ford is likely to leverage the resources of its plants in emerging markets to put together a small car for India and other countries.

But Ford India is still guarded on making a public announcement of its move to produce a small car for the country. "There needs to be some consistency as far as the Government policy is concerned," the Ford India Managing Director and President, Mr Arvind Mathew, said.

"On the back of such a consistent policy, Ford will be able to go ahead in formulating its plans for the small car," he said.

Ford's Indian operations, he said, have now stabilised because of the huge demand for its mid-sized sedan, Fiesta. Its sales have nearly doubled to around 42,000 units in 2006 while its total market share has climbed to 4 per cent.

Ford hopes it will be able to grab a share of 10 per cent of the market by 2010 through better sales of Fiesta as well as newer models like the small car.

For the current year though, Ford will look at consolidating its gains in the previous year and probably "freshen up" the existing line of models.

Thai project

In another development, Ford said investments in India and China will be independent of the political developments in Thailand which has made Ford to review its planned $1-billion investments in Thailand. There are no plans to shift the project to countries such as India and China even if the situation in Thailand does not improve, a top official from Ford told Business Line.

The official said the investments in Thailand were meant for producing cars for ASEAN countries. "Nearly 80 per cent of the cars produced under the new project will be for ASEAN countries," the official said.