Ford EcoSport Can Give Other SUVs a Run for Their Money - Rediff

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Ford EcoSport can give other SUVs a run for their moneyLast updated on: April 26, 2013 15:25 IST

Ford India, which has seen sales of premium hatchbackFigo waver in recent months, is set to fire a fresh salvo inthe domestic passenger vehicle market with the launch ofthe EcoSport in June this year.A compact sports utility vehicle (SUV) under four metres inlength (which enables it to avail of excise duty of 12 per

cent applicable on compact cars), the EcoSport is expectedto be priced aggressively and throw a serious challengenot only to competitors in the entry-level utility vehicle

segment but also to makers of premium hatches andcompact sedans which have mid-range products positioned

in the Rs 600,000 - Rs 10 lakh price bracket.Click NEXTto read more...


Ford India declined to specify the price points of theEcoSport, adding it will be revealed closer to launch.

Industry sources, however, informed that the SUV isexpected to carry a tag of around Rs 600,000 - 900,000.

The base variant of the product is significantly lower thanRenault Duster, which with prices starting upwards of Rs

787,000 (ex-showroom, Delhi) has expanded significantlythe consumer base for compact SUVs in the past one year.Renault sold 39,188 units of the Duster since its launch inJuly last year, which translate into average monthly sales ofa robust 4,354 units.Click NEXTto read more...


EcoSport's pricing is closer to the high-end variants of compact sedan Maruti Suzuki Dzire (priced at Rs 750,000), and of premiumhatchbacks such Volkswagen Polo (Rs 736,000) and Hyundai i20 (tagged at Rs 779,000)."EcoSport addresses the white space with its competition-differentiating attributes like kinetic design language, first-in-segmentSYNC voice enabled interactive technology feature, the 1.0L 125 PS Ecoboost engine that is 20 per cent more fuel efficient than a

traditional 1.6L engine, spacious interiors and urban road requirements such as ground clearance (200 mm) and turning radius thatdefine its on-road capability. We have a great product in the EcoSport and, therefore, we will not limit its draw to any specificcustomer base", says Vinay Piparsania, executive director (marketing, sales and service), Ford India.

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EcoSport's target customer is a young male professionalworking in a multi-national, married with a child and liveswith parents. He aspires to own a vehicle that is modern,premium, sporty, and technology feature-rich.Piparsania says the vehicle has been designed anddeveloped to differentiate him from others in his social

circle, who own passenger vehicles and at the same timesupport his daily personal and professional needs. Thevehicle is suited for his kind of urban lifestyle enabling him

to get away from the city.Click NEXTto read more...


VG Ramakrishnan, senior director (automotive practice), Frost & Sullivan says, "The EcoSport is a new product coming into themarket with new technology, so the likelihood of the product succeeding is good. While it is true there is considerable anticipationabout the product among consumers wanting to upgrade to an SUV from a sedan, the EcoSport is likely to draw in first-time buyersas well."Ford Ecosport is powered by a one-litre ecoboost petrol engine. The vehicle will also be available in 1.5-litre diesel engine and1.5-litre petrol engine with automatic transmission.

Ford India has invested $142 million at its Chennai facility to support the manufacturing of the EcoSport. Piparsania says. thecompany plans to localise the product aggressively to keep prices competitive.Click NEXTto read more...


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"EcoSport is an important product for us and we willlocalize it in India that to help us offer our customerscompetitive pricing and the desired cost of ownership."To achieve economies of scale and manufacture thevehicle cost-effectively, Ford India has firmed up ablue-print to export the EcoSport to countries in Europe,

Australia, Southeast Asia and South Africa.Joginder Singh, president and managing director, FordIndia, says, "The European equation works well with the

EcoSport. We already export the Figo to 38 countriesglobally from India, and would look at a similar scale for the

SUV."Click NEXTto read more...


While Singh declined to specify the proportion of production of the EcoSport which Ford India has earmarked for exports, industrysources indicated that over 40 per cent of scheduled annual production of 150,000 units is being planned for sales in overseasmarkets.The EcoSport will be launched in the largely untapped sub 4 metre compact UV market in India.Though the Indian automotive industry is facing challenging times, industry experts see the urban SUV segment growing andkeeping the consumer mood upbeat.



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SSandilya, president, Society of Indian AutomobileManufacturers (SIAM) says, "There is a distinct change inthe behavioural patterns of Indian consumers. Ten yearsago utility vehicles were looked upon as mini trucks. Todaymore people are buying utility vehicles as they are macho,can be used for weekend trips. Affordability has improved

as has the preference for larger vehicles."In fact in the last financial year, while sales of utility vehicleincreased by a robust 52 per cent to 553,660 units to

overtake volume sales of sedans at 454,719 units; sales ofcompact cars declined by around 10 per cent to 1,419,805

units in the same period.Click NEXTto read more...


Acloser look at the sales number released by industry body Society of Indian Automobile Manufacturers reveals some interestingtrends.Last fiscal, the share of UVs in total passenger vehicle sales in the domestic market increased to 20.60 per cent (from 13.8 per centthe previous year).The in-road has largely been made at the expense of compact cars whose market share in the PV category has fallen to 52.9 percent from the earlier 59.8 per cent.



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What is also significant is that, even the demand boomfor utility vehicles has come from new models at theentry-level such as Maruti Ertiga, Renault Duster and M&M Quanto introduced in the Rs 6-12 lakh price bracket."If new models come in at attractive price points, therewould be a further shift in demand for compact utility

vehicles", added Sandilya.

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Ford EcoSport Can Give Other SUVs a Run for Their Money - Rediff

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