Ford India said on Tuesday it would roll out a small car in India by early 2010, but the product would not compete with cars liks Nano in terms of pricing.
"The small car will be our new model and it will be rolled out by early 2010," Ford India Executive Director Nigel E Wark told reporters in Kolkata.
He said the company is yet to decide on the target segment of the small car, but added that it would not compete with small cars like Nano from Tata Motors' stable.
"The engine volume is yet to be decided but we want to make the engine more flexible in terms of capability to meet the demand of our small car," he said.
Ford India will invest $500 million by 2010 in ramping up its engine production to 2.5 lakh units, enhancing plant capability to assemble two lakh cars and investment in rolling out the small car.
With the new engine plant, Ford's localisation is expected to go up as high as 90 per cent for its cars.
Asked about the impact of the current situation of high interest rate on sale of cars, Wark said, "Indian auto industry will not be able to witness similar growth of earlier years as high interest rate, inflation and revised excise will contribute to impact on growth."
However, due to momentum in the economy, the sector would continue to register growth, but lower than in the previous year, he said.
The company sold 12,800 cars during the January-May period of 2008. To boost sales, it has launched a new variant of Ford Fiesta.
Asked about the fate of the pre-owned car venture which did not look well, Wark said it was one of the priorities of the company but could not give any concrete step and timeframe when it would be relaunched in a new avatar.
