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Ford to launch Mondeo in India by end 2001

Ford Motor Co announced on Tuesday it would begin selling its 'Mondeo', a large family car, in India by the end of 2001, adding to the clutch of new offerings planned by global auto firms.

The new Ford Mondeo, one of the automaker's most popular products, has a 21 per cent share of the large family car segment in Europe where it was launched last November.

"It will come in both petrol and diesel power trains and will be imported in completely built up units from our plant in Belgium," Ford India managing director Phil Spender told a news conference.

Ford, which began operations in India in 1996 already, makes two versions of the 'Ikon' in India which is a leader in the mid-size car segment with a 22 per cent market share.

Spender said Ford had still to decide on the engine size and a price for the saloon. But the car would be positioned in India's top-end D-segment comprising cars priced at Rs 1.0 million.

The Ford India managing director said he saw D-segment sales at no more than 4,000 to 5,000 cars annually.

India loosened its trade policy in April, compelled by a World Trade Organisation pact, and allowed firms to import and sell cars after paying the appropriate import duty.

Since then, several auto firms have planned launches of larger saloons -- Honda, the Accord, Mercedes Benz, its C-class, Hyundai, the Sonata and Daewoo its Magnus, Nubira II and Lanos II models.

ADAPTED FOR INDIA

The car, has been adapted to suit Indian conditions with stronger springs to cushion India's bumpy roads, has a more spacious rear door and seat and sits higher on the road.

Spender said the car would have some Indian content but all local components would be shipped to Belgium for assembly.

"For a manufacturing programme (in India) you would need to sell at least 10,000 units. And we don't see ourselves selling that many in India," Spender said.

Ford's estimate of the D-segment narrowed after India recently increased basic import duties on new cars to 60 per cent from 35 per cent pushing effective duties to 119.65 per cent from the earlier 85.33 per cent, he added.

India's nearly 600,000-a-year car market comprises a high volume entry-level small car segment where cars retail at below Rs 300,000 called the A-segment and a slightly higher priced B-segment comprising hatchbacks priced up to Rs 500,000.

The A and B segment combined make up nearly 86 per cent of sales. There is also a growing mid-size sedan segment, the C-segment, with cars at between Rs 500,000 to Rs 1 million.

Ford India began operations in India in 1996 with the locally assembled Escort model and has invested Rs 17 billion in the country, including a new plant to manufacture the Ikon near the southern city of Madras.

The Ikon was launched in India in December 1999.

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