Ford gets ready to tap diesel mkt

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » BSE | NSE 10/02/12

Diesel seems to be the buzz word in the Indian compact car segment. Ford is now sharpening its weapon to take on the swift diesel and the to-be-launched Getz diesel, reports CNBC-TV18.

Ford's bet in the hatchback segment, Fusion, has not really paid off! Even after a facelift last year, it currrently sells only less than 250 units per month. And to improve that performance, Ford is now set to roll out a diesel Fusion.

Sources say, the new offering should be in by July. It will be powered by the Fiesta's frugal 1399 cc engine and is expected to be priced around Rs 6 lakh.
 
Ford could be trying to reduce the Fusion's length by 18 milimeters, so it comes within 4 meters and can avail lower excise duty. And that would make it a strong competitor to the swift diesel and the diesel Getz planned by Hyundai.

Ford's diesel offering in the midsize segment, the Fiesta diesel has been well received by customers. And it would hope to do the same with the Fusion diesel. Currently close to 20% of sales in the compact car segment comes from diesel cars. With the forthcoming additions from Ford and Hyundai, and also Maruti ramping up its diesel engine production, the compact car segment will get more torque for growth.