"We have finalised plans to roll out the 1.3 litre version by the first quarter of next year," Ford India vice-president (marketing sales & service) John Fink told The Financial Express.

The new version, Fink added, has been planned to augment the product range of the Ford in the country. "The 1.3 litre model will provide fuel economy in smaller displacement engine and target the entry level customers in the mid-size segment," Fink said.

The smaller engine version will be positioned to take on Maruti Esteem, the highest selling car in the mid-size segment. The company is, however, tight-lipped about the pricing of the new version.

Ford India has received over 5,400 bookings for the Ikon within the first week of its launch, racing past its closest competitor Hyundai, which received bookings for less than 2,000Accents during the same period.

The Ikon, launched earlier this month, is available in 1.6 litre petrol and 1.8 litre diesel versions and the company has set a sales target of 20,000 units in the first year. While the petrol version comes in two models, Ikon 1.6 CLXi and Ikon 1.6 ZXi, the diesel version has a single model, Ikon 1.8 ZXi.

The company's marketing initiatives, Fink said, will now be centred around its new offering, and there will not be much emphasis to push the Escort, Ford's entry vehicle in India. "We do not plan to phase out the Escort at this juncture. The car will be produced in accordance with market demand," Fink said.

The Escort has had a rough ride in India so far with cumulative sales of only around 14,000 units Escorts during the three years of its launch. Currently, the monthly Escort sales aggregate to less than 200 cars.For Ford India, its financial fortunes will largely hinge on the success of its India-specific Ikon, which has met with a positive initial response fromcustomers.

"We hope to break even within the next two years," Fink said.

The company, which has around 43 sales and service outlets, is now beefing up its distribution network for the Ikon. "Our plan is to strengthen our network so as to effectively tap at least 95 per cent of the car buying public. Right now, we are in a position to tap around 83 per cent of the buying public," Fink said. On the much-awaited engine joint venture between Ford and Fiat, Fink said the feasibility study for the project will be completed within 6-8 weeks.

"Only after the study is complete, we will take a final decision on whether to go ahead with the project," Fink said.