Despite the global financial crisis, its own parnet's financial woes and a slowdown in car sales in India, Ford India, the Indian subsidiary of US-based Ford Motor Co. is going ahead with its plan to invest $500 million and introduce a small car in India by 2010.

Ford India  yesterday announced a diesel variant of its flagship model the Ford Ikon. The diesel variant of the new Ikon would come with a 1.4 litre Duratorq TDCi engine, while the petrol variant would be available with a 1.3-litre RoCam engine.

Earlier the both the Ford Fiesta and Fusion were powered by the 1.4-litre Duratorq engine with its matching five-speed gearbox. 

While the diesel variant has been priced at Rs5.19 lakh, the spruced up 1.3-litre petrol variant will now come priced at Rs-4.59 lakh.

By 2010 Ford India plans to begin rolling out petrol engines from its power train unit in Chennai. The plant, with an installed capacity of 240, 000 units, became operational in April this year and currently manufactures 60,000 units of diesel engines a year.  The company is currently sourcing petrol engines from its power train unit in South Africa.

Nigel E Wark, executive director (sales and marketing), Ford India, said, ''We have started with diesel engines but once our Chennai plant goes full steam in 2010, we may look at manufacturing petrol engines as well,'' he said.

The company's $500-million investment plan in India announced in January this year includes setting up a manufacturing unit, a power train unit and developing a small car for the Indian market.

Michael Boneham, president of Ford India, speaking to the press at the launch of the new diesel versions of the Ikon sedan, said, "We expect 2009 to be a tough year for the industry with about a single-digit growth (rate)," he said. He added that industry sales in the second-half of 2008 were slower against the first half.

Boneham said the company will adjust production in 2009 to match demand as it did not want to create large inventories, which currently stand at 30 days. He said the company expected higher sales in 2010 due to pent up demand.

Company sources say the change to the Duratorq engine from the earlier diesel engine became necessary with the enactment of more stringent emission legislation in the country.  Here Ford found it was simpler to use the more advanced Duratorq engine than modify the earlier engine.  The Duratorq range of engines was developed jointly by Ford with Peugeot not only for their own models but also for models owned by Citroen and Toyota.

Ford also plans to produce cars that run on compressed natural gas and liquified petroleum gas to attract customers who prefer lower fuel costs. Apart from the mid-sized entry-level Ikon model, Ford India also sells the Fusion and Fiesta cars, and the Endeavour sports-utility vehicle.

Ford sold 14,062 cars and SUVs in India during April-September 2008, a 22.5 per cent decline from a year earlier.

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