Ford hikes prices as import costs surge

Ikon prices remain unchanged.

Ford India, the Chennai-based automobile company of the US giant, said today that it has raised prices of all its models, except the Ikon, by as much as Rs 25,000 due to a strong surge in import costs recently.

The upward revision in prices were brought into effect from the first of this month.

Accordingly, prices of the Fiesta sedan were hiked by Rs 5,000-10,000, whereas prices of the Fusion were increased by Rs 15,000. The Endeavour sports utility vehicle (SUV) saw a jump of Rs 25,000.

However, Ford decided not to increase the prices of its entry-level sedan, the Ikon, as the latest version of the car was recently launched and has got good response from the market.

It has appointed actor Sunil Shetty as the brand ambassador for the Endeavour SUV. Nigel E Wark, executive director (sales and marketing), Ford India, said, “There has been an increase in the exchange rate where there has been a severe depreciation in the value of the Indian currency against the dollar.”

“Besides, auto component makers have also jacked up prices even though input prices have dropped in recent months. This has led to the increase in our prices,” he further added.

According to a company official, the Endeavour SUV has an import content of about 70 per cent, while the Fiesta and Fusion models have about 20-30 per cent imported content.

A falling rupee against other foreign currencies has made imports very expensive.

Ford is the latest company among other car makers such as Toyota Kirloskar, Hyundai Motor and Honda Siel to have announced an increase in prices.