Chennai, Jan 4: Auto policy and the forthcoming budget, it appears, hold the key to the future prospects of the automobile industry. Both the policy pronouncements can make or mar the industry depending on which segment one caters. So much so that Ford India has set for itself two sets of targets, optimistic and pessimistic, for the calendar year 2001.Speaking to a select group of journalists, Ford India Ltd (FIL) managing director Phil Spender said that the industry has asked for an across-the- board reduction in excise duties apart from certain changes in the import duty front as well. The extent of implementation of these recommendations will determine FIL's sales in 2001, he said. He, however, refused to reveal both the targets.
Ford India, for the calendar year 2000, sold 22,849 units (turnover of $320 million) against its target of 21,000 units. About 17,402 Ikons were sold in the domestic market, while the balance were exported, Mr Spender said. Sales for the month of December was 2,595 units.
FIL has also added some new features to Ikon `in order to keep the product fresh in the mind of the consumers.' They include rear high mount stop lamp, new fender badges, hi-jewel tail lamps, driver's seat storage pouch, rear passenger seat storage specially designed for water bottles, umbrellas and mobile phones, a storage net and a new interior trim. Ikon will also have two new colours Pather Black for Ikon SXi and Cayman Blue (on all models).
Fog lamps are available as an option for Ikon ZXi models.Mr Spender said that these minor enhancements were made to tailor the car to suit the taste of the consumers. FIL has developed a customer feedback system which enables it to keep tab on the changing expectations of the car owners.
FIL has also announced a 1 to 3 per cent increase in sticker price of all its models. These increases, Mr Spender said were necessary if FIL had to maintain its margins.
Mr Spender said that car sales in the domestic market were below the expectations. The market which grew at a scorching pace of 46 per cent till June this year slowed down considerably on account of introduction of uniform sales tax across the country. By end of the year the growth had decelerated to a mere 3.5 per cent. He also said that most consumers had advanced the purchases in June as they were aware that sales tax structure was about to change.
He said that India needs a consumer driven growth and that can be achieved only if the quantum of government levies in the sticker price of a car is reduced from the current level of 65 per cent.
On the export front, he said that India had the potential to be the manufacturing hub for Ford's Asia Pacific operations.
A vibrant domestic industry would enable the company to develop its export markets better, he added.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
