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Ford sold more Ikons than targeted in 2000

Our Bureau

CHENNAI, Jan. 4

FORD India Ltd has ended the calendar year 2000, the first full year since it launched the Ikon, with sales of 22,849 Ikons against a target of 21,000 units, a turnover of about $320 million.

However, the company says its performance during 2001 will depend to a large extent on the Budget and the proposed automobile policy.

In December, Ford India sold 2,595 Ikons of which only 768 units were sold in the domestic market. It exported 1,785 Ikon CKDs (completely knocked down) and 42 CBUs (completely built units). The CBUs were exported to Bangladesh. In December 1999, the com pany sold 1,677 Ikons.

Mr Philip G. Spender, Managing Director, Ford India Ltd, told reporters here today that the low domestic sales in December 2000 was due to the company's policy to control inventory rather than chase volumes. The Ikon for 2001 would sport minor enhancemen ts and changes to further tailor the car to what the customers wanted.

The features that had been introduced in the 2001-model Ikon included rear high mount stop lamp, new fender badges, hi-jewel tail lamps, driver's seat storage pouch, rear passenger seat storage specially designed for water bottles, umbrellas and mobile p hones, and a new interior trim. Two new colours -- Panther Black in the SXi model and Cayman Blue across all models -- had been introduced. Besides, fog lamps were available as an optional feature for the ZXi models.

Mr Spender said the price hike of Rs 1,000 to Rs 10,000 announced by the company was meant to take care of these enhancements. He did not believe that the price hike would affect sales, especially at a time when the growth in the automobile industry was way below expectations. Ford India believed in adjusting supply to demand rather than selling below cost.

He said that the industry had grown at 46 per cent up to June and, thereafter, at 3.5 per cent. This was mainly because of the sales tax rationalisation, which affected sales in the northern States. The company believed that the domestic market needed to grow at 8-10 per cent. Both the Government and the industry should find ways to stimulate growth.

One way that the Government could stimulate growth was by reducing excise duty across the industry, rather than adopting a differential excise duty structure. At present, nearly 65 per cent of the sticker price was in the form of taxes, tariffs and charg es, he said.

A reduction in excise duty across the industry would result in a reduction in sticker price, thereby encouraging people to buy cars. Ford India would pass on any excise duty reduction to the customers, he said.

Mr Spender said that the company had made an encouraging start to exports. India could be an export hub in the Asia-Pacific area. However, for exports to be really successful, the domestic market should offer sufficient volumes. Exports would help the co mpany and its suppliers benchmark themselves against international standards.

He said a definite shift in car buying pattern was taking place. For instance, the small car industry had dropped by 23 per cent, while the Zen segment grew by 56 per cent and the Ikon segment by 63 per cent. ``Consumers are clearly moving up,'' he said.

Responding to a question, Mr Spender said Ford India would continue to evolve the product features of the Ikon, but was unlikely to broaden the range of variants available.