Ford India, the Indian arm of the American automobile manufacturer Ford expects that the hike in the excise duty on sports utility vehicles in India as part of the Union Budget 2013-14 will not affect the pricing of the compact SUV EcoSport.
According to Mr. Joginder Singh Managing Director Ford India, the company has received communication from the Government of India that car models such as the EcoSport in the compact SUV category will not seen any impact from the excise hike. This refers to the criteria such as ground clearance and certain other cut-offs which will determine whether the hike will be implemented on the car model or not.
With the tentative launch of the EcoSport by June 2013, the company expects the new compact SUV to help the carmaker push through the sluggish market conditions and boost its sales in India. The company also has export plans for the compact SUV which will be manufactured at the company’s upcoming plant in Gujarat. The new plant will be operation by 2014 and will serve as an export hub for automobiles and engines, stated Mr. Singh.