Mumbai, March 9: Mahindra Ford, the joint-venture company of Mahindra & Mahindra and Ford Motor Company of the US, has ruled out any price cuts for its Escort model. Managing director John Parker said at a press conference here on Monday that his company would stay out of the price-war being witnessed by some models in India.The press meet was organised to mark the launch of the Ford Escort 1.6 Zetec. The car will take over from the 1.3-litre petrol Escort which did not take off and is likely to be phased out. Company officials, however, reiterated that no decision had been taken so far.
Parker admitted that he was concerned about the state of the mid-size segment. "The category we are operating in is slow at present, but we think this is temporary," he said. The company would have to reduce its targeted production figures `quite drastically', but was hopeful that there would be a turnaround in the days to come, he said.
According to Parker, the local content for the Escort was improving and thecompany was pleased with its suppliers. At present, there are 22 dealers across the country with two more planned in Bhubaneswar and Calcutta. "We came to India with a set product strategy; the feedback said more power was needed and we are doing it," Parker said explaining the rationale behind the 1.6-litre Escort.
The car, priced between the 1.5 litre Honda City and Opel Astra (translated into around Rs 8 lakh on-road in Mumbai), is available in two new colours -- Amparo Blue and Alberto Green, in addition to the existing Nouveau Red, Moondust Silver and Diamond White. It boasts of a host of features like power steering, front and rear power windows, tachometer, rear window defogger and anti-theft alarm system.
Escort's engine configurations for Indian Fiesta
The Indian version of the Fiesta, scheduled to hit the roads towards the last quarter of 1999, will also be fitted with the same engine configurations as the Escort. The car is expected to come in three versions, a 1.3-litre petrol,1.6-litre petrol and a 1.8-litre diesel.
"The engines will be similar but not identical," Mahindra Ford officials told The Financial Express. Observers perceive the move as a practical one as it would standardise the engine requirements of the joint venture company.
The three-box Fiesta will compete with the Zen and has been designed exclusively for domestic conditions. The Escort is being assembled at M&M's Nashik plant but sources say that in the event of overcapacity (the plant has a capacity of 25,000 cars), production of the Escort could continue at the much bigger Chennai plant of Mahindra Ford.
