With the objective of raising the competition bar in the sluggish Indian automobile market and to boost its sales, Ford India is planning to lower the prices of its car models. The company has seen a decline of 4 percent in its sales in the fiscal year 2011-12 and with two months remaining to the end of fiscal, it is compelled to implement this competitive pricing strategy.
Ford India’s sales have been adversely affected due to the economic slowdown in the automobile industry, due to which its new car models such as the Ford Fiesta sedan haven’t been able to rake up significant sales figures. The Fiesta sedan is now being offered with a discount of up to Rs 75,000 in order to compete with rival car models such as the Honda City and the Hyundai Verna.
According to Mr. Nigel E Wark Executive Director (Marketing & Sales) Ford India, the company is planning to review its pricing strategy to adapt to the changing market dynamics and to keep up with the new launches and competition in the industry.
