Both the US car makers are now planning to launch new models for the Indian consumers who have till date given a complete thumbs down to their existing models. Riding on a temporary auto boom, Ford launched an ill-conceived model -- Escort at the premium segment, while General Motors offered Opel Astra few years back to the Indian market. Both the companies have reported over 50 per cent decline in their sales for the fiscal 1999 as compared to previous year.

"Both Escort and Opel Astra have failed in the used-car market. These cars are not commanding a good price in the used-car segment as compared to Maruti Esteem," says a Mumbai-based used car dealer. Dealers say that justlike Cielo, customers are stuck with Escort and can't find an exit route as even in the used car segment, the price tags are above Rs four lakh.

"The moment a customer drives an Escort out of a showroom, it's value in the used car market is down by a lakh. Similar situation was witnessed in Daewoo's Cielo model," dealers said, adding, "We will not be surprised if Ford goes the Peugeot way." The hot favorites among the used car market are still coming from Maruti's stable. The demand for Maruti 800 and Esteem is very high as compared to other models. "Marutis are still selling due to availability of cheap spare parts and service centres. On the other hand, Escort and Astra's spare parts are very expensive... which has made customers to go for Esteem," dealers add.

Despite its four years of operations, Ford and GM have failed to set up a dealer network which can be compared to market leader Maruti Udyog. As these American companies were offering only highly priced models, they concentrated only on bigcities while Maruti continued to consolidate its position. "The used car segment is an important ladder for two-wheeler owners and Maruti 800 owners to upgrade. But due to lack of resale value, Escort and Astra owners are running from pillar to post to sell off their vehicles," dealers said. ``The only way they can exit is to offer a hefty discount to a Esteem model produced in the same year,'' dealers add.Jolted by falling sales and accumulated losses, both Ford and GM are now planning to launch new models by year-end. Analysts say that due to wrong selection of models, Ford and General Motors have failed to create a brand awareness in India.