Ford plans diesel Fusion

Ford India said on Thursday it will launch the diesel variant of the mid-size Ford Fusion by the third quarter of this fiscal, even as it forecast demand for vehicles softening due to steep interest rates and possible revision in annual sales target.

"The diesel variant, to be launched by the third quarter of this year, will enable us to have a robust diesel portfolio," Ford India President and Managing Director Arvind Mathew told reporters in New Delhi.

He also said that increasing interest rates could soften demand for vehicles, which may lead it to revise its yearly sales target.

In April and May, there was softening of demand due to a variety of factors including rising interest rates, which tightened monetary supply, and appreciation of rupee.

"We are keeping a tab as to how the sales pan out in June and July," he said.

If the soft demand continued, the company would have to revise its sales growth target, he said. Last year, Ford India achieved a growth of 45 per cent at 41,797 units as against 28,840 units in the previous year.

The company today launched a new version of its sports utility vehicle Ford Endeavour priced between Rs 14.7 lakh (Rs 1.47 million) and Rs 15.62 lakh or Rs 1.56 million (ex showroom Delhi).

The company is betting on the new vehicle, powered by a 2.5 litre diesel engine, to enhance its share in the premium SUV market where it commands a 38 per cent share.