. Ford Figo Brings ‘Cool’ to India

Ford is betting a large part of its future on a revamped lineup of small cars, such as the 2010 Ford Figo. In colloquial Italian, the name means “cool.” But apart from the cute name and low price tag, the Figo won’t directly translate to boosting Ford’s small car sales in North America. That task belongs to the Ford Fiesta subcompact, which arrives this spring.
Built on the same platform as the Fiesta, the new Figo is Ford’s first small car built specifically for the needs of Indian car buyers. Compact, easy to repair and inexpensive cars make up about 70 percent of the Indian market. But until now, Ford lacked an entry-level car to compete with popular low-cost offerings from Hyundai, Maruti-Suzuki, Tata Motors and General Motors.
The Ford Icon sedan, formerly the company’s cheapest offering in India, was simply too expensive with a base price hovering around $10,000. The 2010 Figo will be much more affordable when it goes on sale later this month. Base models start at $7,680, and customers will have the choice of either gasoline or diesel engines.
That might sound like a bargain, but the Figo is nearly twice the price of India’s cheapest cars, such as the Tata Nano and Maruti-Suzuki 800. The country’s per capita income is less than $1,000, so even the most affordable vehicle remains a huge investment for many Indian car buyers.
Maruti-Suzuki, the Indian arm of the Japanese carmaker Suzuki Motor Corporation, controls roughly 50 percent of India’s automotive market because of a vast lineup of economical small cars. Last year, Tata, India’s largest indigenous automaker, introduced the $2,500 Nano. G.M., Volkswagen, Hyundai and many other carmakers are planning similar low-cost vehicles specifically tailored to India.
Ford’s edge could come from maintaining an emphasis on performance, safety and driving dynamics. The available 1.2-liter gas-powered 4-cylinder makes 70 horsepower. While this might sound puny by United States standards, it’s double the power of the 2-cylinder engine found in the Nano. Air bags and anti-lock brakes (a rarity in most Indian vehicles) are offered on upper trim levels of the Figo.
While the Figo’s bland exterior won’t blaze any new styling trails, the car’s small size and nimble steering should make it adept at coping with crowded Indian roads. The clutch has also been designed for low effort, to help take the pain out of dealing with India’s notorious urban traffic jams.
Ford has invested $500 million upgrading its plant in Chennai, India, to coincide with Figo production. Annual capacity will be doubled, to 200,000 units, and there are plans to export the car to Asia-Pacific and African markets. The Figo might not be coming to the United States, but it still represents a cornerstone of Ford’s global small car strategy.