The company, however, is going ahead full stream with its plans to introduce a hatchback and a sports version of the Escort. Besides, a limited edition version of the Escort - Orion - would be rolled out next month, the company spokesperson said.

This would be the third special-value product of the Escort to be introduced by the company after 'Anniversary' and 'Freedom' last year.

Mahindra Ford India had earlier announced plans to introduce the turbo- diesel version of the Escort this year, but in the present recession-hit market, where companies are finding it hard to offload their luxury cars, it has decided to go slow on this programme, and instead, come out with a limited edition version.

About Orion, the spokesperson said only 300 cars would be produced under this special edition, which will be pricedlower than the standard Escort.However, she refused to state the exact price tag the car would sport.

The Orion Escort will have several new features like rear-power windows, wheel-cover variants, CD changer and a special Orion emblem to differentiate it from the regular Escort.

Such special editions are part of Ford Motor Company's international marketing strategy, and these are now catching up in India with even General Motors having joined the race. Its world cup edition of the Opel Astra, only 300 units of which were produced, were sold off in just 40 days. Regarding the Foreign Investment Promotion Board (FIPB) approval granted to Ford for increasing its stake in Mahindra Ford to 92 per cent from the present level of 50 per cent, the spokesperson said the stake increase would be done in phases.

''It would happen as and when we put in more investments in the Rs 1,700- crore Fiesta project coming up in Chennai,'' the spokesperson added.

As many as Rs 270 crore has already been invested by both thepartners in the project.

''With the entire investments coming in, Ford's stake in the company would be increased to close to 80 per cent. We have just got an enabling clause to hike the stake up to 92 per cent. We do not intend to go about it straightaway,'' the spokesperson said.

Meanwhile, sources stated that the five-door hatchback sports version of the Escort would be rolled out in India by the fourth quarter of 1998.

The design for the model has already been finalised and the car, powered by a 1.6-litre petrol-zetec engine, will hit the roads by October-November this year.

''The same zetec engine, which was introduced a few months back, without any major modifications, will be used for the five-door hatchback. We have just recently introduced this new powerful engine and there is no point getting a new powerhouse again within a few months.''

The car, which would carry a price tag similar to the present Escort, will be produced at the company's Nashik plant. ''We will only have to make a fewminor adjustments here and there to accomodate this new version, as essentially, the platform will remain the same,'' the sources said.

However, the car's length might be shortened to give a sportier look. The sports model will be available in a host of new colours and will boast of several additional features like power steering, front and rear power windows, tachometer, rear window defogger, remote entry and in-built anti-theft alarm.

The car will be available only in a petrol-driven version.

On Mahindra Ford's new project in Chennai to manufacture the Indian version of Fiesta, sources said, as many as three different variants of the car would be produced from the plant, which will include a standard, deluxe and an automatic-transmission model.

The Fiesta would be introduced with a local content level of 75 per cent, which would be hiked further over the years.

The car would be priced close to Esteem. ''We have already finalised the set of vendors for the project and are going ahead full streamwith it. The car will zip down the city streets by April 1999.''