Thursday, January 16, 2014
By John Andrew
Price of Ford Classic reduced up-to Rs. 1 lakh by Ford Motors
Ford India is trying to perk up its mid-sized sedan Ford Classic by slashing prices by Rs 70,000 to Rs 1 lakh across variants, with the entry level starting at Rs 4.99 and price top-most variant costing Rs 7.6 lakh, said people familiar with the development. The American carmaker had repositioned the old Fiesta sedan as Classic in mid-2012. This repositioning would mean the Classic will now be pitted against sub-4 metre sedans like Maruti Suzuki Dzire, Honda Amaze and the upcoming sub-4 metre sedans from Hyundai and Tata Motors. The dealers were intimated about the decision last week and the new prices will be applicable immediately.
When contacted, Ford India confirmed the development. Vinay Piparsania, executive director of marketing, sales and service at Ford India, said the new strategy is in tune with the company's 'Go Further' global promise. "At Ford India, we are committed to deliver on customer expectations by continuous improvements in the value proposition of our products. Ford India has repositioned the Classic starting at Rs 4.99 lakh by optimising efficiencies. The repositioning will make the Classic an even more compelling offer by further enhancing the ownership experience," said Piparsania. Barring the phenomenal success of its sports utility vehicle EcoSport, the US car maker has found the going tough with the rest of the models. The sales of its hatchback Figo declined 44% in 2013 to approximately 38,500 units. The sales of Classic sedan, too, have been on a downhill, with volumes declining 61% in 2013 to 5,900 units against 15,250 units in 2012.
Experts say the repositioning of the Classic hints at a possible repositioning of the Fiesta as well. The new Fiesta will now be competing more aggressively with Honda City, Hyundai Verna and Volkswagen Vento. Fiesta, despite being a runaway success globally, fared poorly in India due its premium price tag. The sales of the new Fiesta in 2013 were even lower than Mercedes Benz C Class, Audi A4 and BMW 3 Series, which sold upwards of 4,000 units. Ford India sold approximately 1,450 units of units of the new Fiesta in 2013 against 2,180 units in 2012, a drop of over 30%.
Source: Economic Times
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