Ford Seeks Nod To Launch Eight Global Brands

If your appetite for high-end cars has not yet been whetted, worry no more. Ford India Ltd has approached the government, seeking blanket approval to import any model out of its eight global brands -- Lincoln, Mercury, Volvo, Jaguar, Aston Martin, Land Rover, Mazda and Ford -- in the near future.

The company also intends to expand its product portfolio beyond passenger cars to sport utility vehicles, multi-utility vehicles, vans and mini-vans and trucks, etc.

According to the company, the approval is being sought to prepare Ford for the launch of new vehicles in the Indian market, following the rationalisation of import duties.

A Ford India spokesperson said an application to this effect has been filed with the Secretariat for Industrial Assistance (SIA). "We have sought the government's approval to launch the Ford Mondeo, apart from our already existing Escort and Ikon, as our existing agreement with the government mentions of only the last two models. The Mondeo will be launched around the end of this year," she said.

However, because foreign investments in the automobile industry (provided the existing shareholding is not altered) have been put on the automatic route and imports have been liberalised, Ford has also decided to take prior approval to launch more models in the future. "If we get such an approval, we will not have to go back to the government again whenever we are planning a new launch," the spokesperson said.

However, there are no immediate plans to launch any other model apart from the Mondeo. "Though the present import duties are high, they are expected to come down soon, offering a bunch of opportinities in terms of imports. While some models may be brought in the form of CBUs (completely broken down units), some others can be assembled in India," she added.

The Ford's proposal is likely to be taken up for consideration of the Foreign Investment Promotion Board (FIPB) at its next meeting on August 2, government officials said. They pointed out that the department of heavy industry (the administrative ministry) and other concerned ministries have no objection to the plan.

A similar proposal by Mercedes Benz India was cleared by the FIPB a couple of months ago. Mercedes said that, with the import of cars expected to increase, the company thought it wise to take a blanket approval for all models.