Ford to start export of Ikon by fourth quarter

NEW DELHI, JUNE 18. Ford India (FIL) will commence exports of completely knocked down (CKD) units of its mid-size car `Ikon' from the fourth quarter of the current year, company's managing director Mr. Phil Spender said.

``We will begin exports of Ikon CKDs from the last quarter of 2000," Mr. Spender told newsmen here at a function to showcase two concept models of Ford Ikon designed by famed auto designer Mr. Dilip Chhabria.

Initially, the company would export its Ikon model to South America and South Africa, he said, adding the company was also exploring other global markets to export the car.

Ford would make several changes in the car to meet the emission and safety standards in different countries, Mr. Spender said. About the Ikon's export volume, he said the company has not set any target and it would depend on the market conditions.

The company is planning to make India an export hub due to low manufacturing costs in the country, company sources said, adding the success of Ikon would help Ford in realising its export target.

Stating that the Indian car market is poised to become one of the largest automobile market in the world, Mr. Spender said Ford India was undertaking many initiatives to increase sales of its mid-size car.

The company has recently tied up with Industrial Credit and Investment Corporation of India (ICICI) to facilitate purchase of Ikon models by non-resident Indians (NRIs) for their friends and relatives.

The scheme also allows NRIs to book their Ikon directly on the Ford India website and make payments through ICICI.

The company will roll out a new variant of Ikon named 'Exi' next month to bridge the gap between the entry level versions '1.3 Ikon Clxi' and '1.6 Zxi'.

The new 1,300 cc version will have additional features like power steering and power windows and will be positioned between Clxi and Zxi which carry a price tag of Rs. 5.15 lakhs and Rs. 6.29 lakhs (ex-showroom, Delhi) respectively, Mr. spender said.

Cash profit in current year

Ford will start generating cash profit by the end of the current year at a sales volume of about 22,500 units of its mid-size car Ikon. ``We are expecting to sell 22,500 units of Ikon during the year 2000. With this sales, we will be able to generate cash profit by the year end,'' Mr. Spender said

He said it was difficult to predict the time when the company would achieve break-even level as it would depend on future market conditions and investments by the company on various projects.

The company, a 85:15 joint venture between Ford Motor Company of the U.S. and Mahindra & Mahindra, has so far invested Rs. 1,700 crore in India. He said there was no immediate plan to launch any new model in India as the company's strategy was to stabilise and establish its mid-size car 'Ikon' in the Indian market.

Asked about the company's plan to enter into the small car segment, Mr. Spender said "These plans are still on the paper". On the growth of the lower mid-size car market in India, he said sales in the segment was expected to double during the current year to about 80,000 units compared to about 43,000 units last year. He said the company was targeting to capture 20-25 per cent market share in the 'Ikon' segment.

- PTI

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