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| Ford India aims 35% biz from tier-III cities |
| BS Reporter / Mumbai/ Ahmedabad Mar 18, 2010, 00:22 IST |
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Backed by a spurge in spending power, tier - III cities like Rajkot and Varanasi are set to fuel growth for Ford India. According to the car maker, as against tier - I and tier - II cities, it is the tier - III cities where the company sees more growth in terms of demand and sales.
"In small cars, while tier - I didn't grow at all, tier II cities grew by 20-25 per cent. Compared to that, tier - III grew by 30-35 per cent. People in tier - II and III have access to money. Currently, about 20-25 per cent of Ford's business comes from tier - III cities but we expect that number to go up to 30-35 per cent in next couple of years," said Nigel Wark, executive director, marketing, sales and service, Ford India Private Limited.
Apart from a rise in spending power and availability of finance, growth in value of real estate has also been substantial enough. "These factors have resulted in consistency in income in tier - III cities. Since 70 per cent of cars sold are through finance, it shows why such a growth can be expected from tier - III cities as well. For instance, Rajkot, a tier - III city, was our first dealership to book 100 orders in the first week of launch itself," Wark added.
However, divulging on the company's marketing plans, Wark said that the company is also looking at being successful in tier - I cities. "You have to be successful in tier - I to convince people in tier - II and tier - III cities to buy our products," he added.
On the sales and service, while the company has about 165 facilities across the country currently, Ford India is expecting to take the number to 200 by end of the calendar year. Meanwhile, having launched its new compact car, Ford Figo in Ahmedabad for the Gujarat market, the company is now looking at exporting the model to South Africa and other countries from its Chennai plant.
Launched in four different models, LXI, EXI, ZXI and Titanium, Ford Figo will be available in both petrol and diesel variants at a starting ex-showroom price of Rs 3,57,676.
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