Ford’s EcoSport Promises to Shake Up Indian Market

MUMBAI – Ford has lost money in all but one of the 18 years it has operated in India, but the auto maker could see a quick reversal of fortune with the EcoSport’s arrival.

Sales of the highly anticipated compact cross/utility vehicle launched June 26, and Ford India says it received 30,000 bookings in the first three weeks.

The base EcoSport is competitively priced at Rs559,000 ($9,200) for a gasoline engine and Rs669,000 ($11,000) for a diesel model. Those prices establish the compact CUV as the auto maker’s passport for entry into India’s immensely competitive small-utility segment.

The EcoSport is being produced at a Rs8.5 billion ($142 million) plant in Chennai that incorporates Ford’s global manufacturing practices. Built in 21 months, the facility features fully automated production and other modern processes and flexibility. Six different bodies can be built on one line.

Stamping capacity has been increased, while touchless inspection measures panels and dies with precision. Oven baking is eliminated from a painting process that yields superior finish, high gloss and greater durability, Ford India says.

Customers can choose from among 10 variants that include three fuel-efficient turbocharged engines and two transmissions in four trim levels. Entry-level models are powered by 3-cyl., 1.5L EcoBoost gasoline or diesel engines. The advanced models’ award-winning 1.0L gasoline engine surprisingly performs even better.

Prices for the better-equipped Titanium models start at Rs789,000 ($13,000), while the top-of-the-line Titanium O model, fully equipped and powered by a 4-cyl., 1.5L diesel engine, is priced at  Rs1.17 million ($19,200).

Ford advertises the 3-cyl., 1.0L gasoline engine’s fuel economy at 44.4 mpg (5.3L /100 km), while the 1.5L diesel achieves 53.3 mpg (4.4 L/100 km). It reaches 60 mph (100 km/h) in 13.2 seconds.

The EcoSport is 157.1 ins. (399.9 cm) long, short enough by just 0.4 in. (0.1 cm) to fall into a lower tax bracket.

The CUV also features Ford’s SYNCconnectivity platform, which allows occupants to control their media players and mobile phones via voice commands . The auto maker also claims a first in India with its SYNC-based Emergency Assistance feature, which automatically connects vehicle occupants with emergency services following an accident.

A 2-year, 322,000-mile (200,000-km) warranty comes with the car described by Ford President and CEO Alan Mulally at last month’s sales launch as “a great-looking, fuel- efficient, safe and compact utility at a very affordable price.”

EcoSport models already are being built in China and Brazil. Production in Thailand and Russia will follow the addition of India.

Customer demand in the utility segment is exploding in emerging markets that include Southeast Asia and South America in addition to India. Ford is building EcoSport capacity in India for domestic sales and later for export, starting with Australia and New Zealand.

Ford expects the EcoSport will be a game-changer in India in 2013 in the same way the subcompact Figo has become a volume generator.

The only year in which the auto maker has turned a profit in India was 2010, when the Figo made its debut and spearheaded Ford’s 195% year-over-year boost in overall car sales in the country. Deliveries increased another 15.6% in 2011 but retreated 7.7% last year to 86,090 units, WardsAuto data shows.

Built on the same platform as the Fiesta and sharing components with the popular small car, the EcoSport is aimed at luring buyers away from the hatchback and entry-level-sedan segments, and will compete on equal terms with highly successful CUVs such as the Renault Duster.