Ford will launch new model next month: Nigel Harris

You first launched Ford Endeavour in 2003, and now launched its new version. How different is it?
No, it's not a relaunch. It is a completely new product ground up. It has nothing in common between, only the name. Globally, it's called the 'Everest' but we cannot call it here because that name is trademarked in India. It is completely a different platform. Earlier, the platform was used to be a Mazda platform and this is based on Ford's T6 platform. It has two engine variants: the 3.2- and 2.2-litre Duratorq with just two trims, Trend and Titanium, albeit in multiple combinations. These variations and upgraded features were not with the old Endeavour.

Do you have any new product lined up in the near term?
We had a pretty busy four months with a Figo, Aspire, Endeavour and refreshed EcoSport that we launched in the September last year. We got one more new vehicle for next month.

Is it much awaited Mustang?
(Laughs)... Seems you know it better than me.

How much is the export contribution to your overall sales? What will be the scenario by the end of the financial year?
It is in the ratio of 50:50. We export Figo, Aspire and EcoSport to over 50 markets around the world. We recently launched our products in Mexico, Middle-east and America.

You have so far opened 300 service centres across 185 cities, half of them are in Tier 2 and 3 cities. Is this is your new strategy to cater to the hinterland?
The company is looking for expansion in smaller cities that have population of over a lakh. Ford is working on an analytical model which would decipher economic growth of a city. There are towns which are nowhere on the map, but their economic level is very high. By expanding service outlets in such cities we are exploring untouched markets. These smaller cities currently contribute 40-50% to Ford's sales volume across segments.

Why are you going so aggressive in small towns?
They will contribute a significant portion to the volumes. The cost of customer acquisition in smaller cities is low, the dealer profitability hence tends to be higher. The market share of such markets are two to three times higher than that of Tier 1 cities.

In 2015, Ford has launched Sanand plant at Gujarat. Are you looking at more expansion in your capacity?
With Sanand operational, Ford India has doubled its annual installed manufacturing capacity to 610,000 engines and 440,000 vehicles. The overall commitment for the plant is $1 billion. Compact sedan Figo Aspire is the first car to roll out from the new Sanand plant. The plant also manufactures new Figo hatchback.

How did the Chennai floods impact you?
The Endeavour launch, scheduled for December 2015, was delayed due to floods in Chennai as the company had to suspend operations for more than three days. Production of around 5,000 units took hit due to suspension.

What is the impact of registration ban in diesel cars in New Delhi till March 31?
Yes, there is a significant impact. Delhi-NCR contributes 12-15% of the total sales volumes. We are equally concerned about environment issues. However, it is not mostly due to diesel engines. We have full faith in the government and the court decision.