The unprecedented hike in Petrol prices has resulted in a stronger demand for diesel cars. Ford, which has just launched the new Fiesta in both petrol and diesel versions, has witnessed a strong shift in demand for diesel cars.
Over the past six months, the percentage of the diesel variant in the Figo’s overall sales volume has gone up to seventy percent from sixty percent earlier. Michael Boneham, President & MD, Ford India says “a year ago the percentage of diesel was fifty five percent. Because of the surge in demand there has been a production constraint. Some of the component vendors are not being able to supply enough”.
Ford India is expected to sell around 1.75-1.8 lakh vehicles this year. The company will add a third shift in its Chennai plant to cater to the rising demand. It has already invested 72 million USD to expand the annual production capacity of its engine manufacturing plant from 2.5 lakh to 3.3 lakh units.