Ford India expects 10% drop in sales in 2008

Ford India, the wholly-owned subsidiary of Ford Motor Company of US, today said it expects 10 per cent drop in its car sales during the year 2008 to 36,000 units compared to 2007.

The company, which has a production capacity of 1,00,000 units per annum at its Chennai plant, sold 40,000 cars last year.

According to Timothy D Tucker, vice president, sales, Ford India Private Limited, the company, in anticipation of economic slowdown and subsequent drop in its sales for the current year, had already switched over to single shift manufacturing from earlier two shifts at its plant from July this year.

The company is currently in the process of investing $500 million to expand its capacity further and set up a diesel engine plant. The engine plant has already been commissioned with a capacity to produce 60,000 units per annum, a part of which will be exported to Asia Pacific countries, he told reporters, here.

Ford India today launched the new 1.4 litre Ikon diesel with advanced DuraTorq TDCi engine. The company which has been clocking sales of 250 units of Ikon a month during the first seven months of this year, expects to grow the sales by four to five times in the remaining months, Tucker said. "We are hopeful of better sales in the remaining months as the liquidity in the financial markets and lower interest rates will help the customers to go for more buying of new cars in November, December and early next year."