Indian Economy News

Ford Mustang makes India debut as first made-in-Detroit car

New Delhi: The iconic Ford Mustang will be available in India from the second quarter of 2016, Ford Motor India Pvt. Ltd has said.

The company unveiled the car in India on Thursday, showcasing a popular model whose previous generations have featured in Hollywood movies such as Goldfinger and Gone in 60 Seconds, as well as the 1990s Bollywood melodrama Aashiqui.

American heavy metal band White Zombie, R&B singer Wilson Pickett and American guitarist and singer Chuck Berry have famously recorded songs around the Mustang.

The car also marks the legal entry of the first made-in-Detroit car, widely hailed as the headquarters of global automobile manufacturing, from Ford. The company has been functional in India since 1996.

The last time a car came from that continent was in 1934-35—the famous Model T, which came to India from Canada.

Ford has sold nine million Mustangs worldwide since it was introduced in 1964.

“After 50 years, we have developed a right-hand drive of the Mustang, and it is a perfect time to bring it to India,” said Nigel Harris, president and managing director of Ford India.

Mint in March first reported Mustang’s India entry after Ford Motor Co.’s global chief executive Mark Fields disclosed the plans to Ford India dealers.

The company did not disclose price details but it is expected to cost between Rs.45 lakh and Rs.50 lakh. It will compete with BMW India Pvt. Ltd’s 5-Series sedan and Audi India Pvt. Ltd’s A6.

The new Ford Mustang made its public debut at the Detroit Motor Show in 2014. It is the latest global model developed under the “One Ford” plan, which called for all its units worldwide to work together as a lean unit.

Globally, the new Ford Mustang comes powered with two engine choices—a 2.3-litre EcoBoost petrol engine that delivers 310 brake horse power (bhp) and a five-litre V8 engine that delivers 418 bhp.

India, however, will only get the model with the V8 engine.

There are a lot of things that bind development of the sixth-generation Mustang with India.

The lead planner of the Mustang is Prakash Patel, an Indian-American who was also associated with the development of Ford Explorer and Lincoln Aviator. Patel’s rise is testimony to the growth of Indians in Ford’s ranks.

Others holding important positions at the Detroit-based firm are Raj Nair, executive vice-president, product development, and chief technical officer at Ford; Kumar Galhotra, vice-president of Ford Motor and global president of Lincoln; and K. Venkatesh Prasad, group and senior technical leader (vehicle design and infotronics), Ford Research and Innovation.

In developing the new-generation Mustang, Ford ensured it met some benchmarks based on Indian conditions. The car went through rigorous tests under four-and-a-half inches of water, and Patel claimed it could wade through such conditions comfortably. Deflectors have been redesigned in the engine bay to ingest and expel water. The horn used, sourced from a Pune-based vendor, is louder and more durable.

“Another test we had to do is that in India there are a lot of low-speed front and rear collisions. We do a lot of tests to see that we do not damage the facia and the bumpers and make sure that the car looks pristine,” Patel said.

Though India has had a fascination for cars, such as the Mustang and Chevrolet Impala, with many movie starts such Rajesh Khanna, Sunil Dutt and Nutan being their owners, an analyst believes that such launches do not necessarily boost companies’ sales.

“As a result of steep import taxes in India, the model is unlikely to boost Ford’s sales volumes in great proportions, except maybe in the first year. However, the Mustang may end up becoming a halo car for the brand, attracting customers to other Ford nameplates,” said Anil Sharma, principal analyst at forecasting firm IHS Automotive.

Other niche and iconic brands such as the Fiat 500, launched in 2008, sold only around 70 units. It was discontinued in India in 2012. The BMW Mini Cooper, launched in 2012, got off to a good start with 100 bookings on the first day of its launch during the 2012 Delhi Auto Show. Ever since, BMW has stopped sharing sales numbers of its models with the media, the Society of Indian Automobile Manufacturers, and the government.

Volkswagen Beetle, launched in 2009, sold around 650 units. The car was phased out in India in 2011.

Ford isn’t concerned.

“Mustang provides the Ford oval a spotlight,” said Patel.“Eight times out of 10, the word after Ford is Mustang. That shows you how iconic the brand is.”

Another problem: India does not have roads for such fast cars.

“But, you can look good in it,” Patel quipped.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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