Ford Hopes To Be Best in India's Auto Market

08/28/96

Reuters reported that Ford Chairman Alex Trotman said that Ford was preparing itself to enter India's competitive auto market, and that it hoped to come out on top.

"It is going to be a very competitive market, but we are confident given the people, technology and quality we are going to be the best among competitors," Alex Trotman said.

Trotman spoke to reporters at the western Indian city of Nashik, which is 140 miles northeast of Bombay. Trotman was there to mark the launch of Ford's first Indian made car, the Escort, at the company's joint venture plant. Ford and India's Mahindra & Mahindra each own 50 percent equity in Mahindra Ford India Ltd. Trotman said Ford had no plans to raise its holding in the joint venture.

"We are satisfied with equity relations with the partner and don't wish to change that," he said.

Discussing the possibility of a new Asia-car, Trotman said: "We are studying that kind of vehicle. Yes, quite a bit of advanced work is going on, on that kind of vehicle."

John Parker, president and managing director of the joint venture firm said the Indian-made Escort "will be competitively priced with Ceilo and Esteem." The firm will hang a price tag on the new product next week, said Parker.

A joint venture between India's DCM group and South Korea's Daewoo Motor, DCM-Daewoo, manufactures the Ceilo, while the Esteem is produced by Maruti Udyog, a venture between the Indian government and Japan's Suzuki Motor Corporation.

The Mahindra Ford plant has a 25,000 cars per year capacity and plans to set up a second plant in southern Tamil Nadu state. It will initially launch four models of the Escort, followed by the Fiesta.

Paul Dever -- The Auto Channel