Look at fuel now

The Supreme Court order of April 29 is a catalyst to ensure that automobile manufacturers bring in new technology and stick to better emi...

The Supreme Court order of April 29 is a catalyst to ensure that automobile manufacturers bring in new technology and stick to better emission norms. However, in the future the automobile industry will themselves do that proactively, rather than through the judicial process. This will progressively help in creating a cleaner environment as far as vehicle emissions are concerned.

Ford world wide and Ford India Limited are committed to this cause. In fact, Ford India has established Henry Ford Research Chairs at Indian Institute of Technology, Madras and Delhi for research and development in the field of environment and safety. We at Ford India want to talk to the Government of India and other agencies to seek their participation in initiatives which can improve as well as bring awareness on environmental and safety issues.

Automotive emissions depend on two factors fuel quality and technology. The government and the automobile manufacturers should work in partnership to find out a strategy and have along-term plan through which the manufacturers can have a clear-cut plan for implementing emission norms for the next 10 to 20 years and establish linkages with the quality of the fuel.

In future, fuel quality will be a more important factor for setting automotive emission standards than technology. A lot of work needs to be done on the fuel quality front.

The perception that diesel-driven vehicle create more pollution is wrong. The buyer must be given a choice. Ford India Limited will launch Ikon 8212; our forthcoming mid-size car in both diesel and petrol-driven versions. For, our company feels that it is important to give a choice to the consumer. In Europe, for instance, there is an increasing trend towards dieselisation.

While in the USA, people prefer diesel-driven cars. So this is essentially a question of choice. Our company would like to offer all fuel options to our buyers. There is little sense in indigenising all the components in our models. With globalisation, it makes perfect sense toundertake a cost-benefit analysis and indigenise only those components that would be cheaper in the country where the vehicle is being manufactured and import the rest of the components.

Newer segments are emerging in the Indian passenger car market. Over the last six to seven months, there has been a lot of activity in the small car segment. However, the buyers8217; perceptions have changed as well. Today, technology, safety, car styling and design determine the buying decision.

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Price is no longer the only determinant. Cars like Hyundai Santro and Daewoo Matiz today have become entry-level cars. The buyer has also become more discerning and wants fresh products and demands choice. After the small car segment, there is a wide gap. And then there are the mid-luxury cars like Opel Astra, Ford Escort, Honda City and Mitsubishi Lancer.

This is where most players are now planning to position their products. General Motors will be launching Opel Corsa around the year-end, Ind Auto has already launched FiatSiena. Our company will be launching Ford Ikon by the end of this calendar year.

This financial year, passenger cars will grow by more than 10 per cent, across all segments. In my opinion, it is inappropriate to compare month-on-month and year-on-year figures. This gives a distorted picture. The Indian passenger car market is still at a nascent stage. India will take more than five years to consolidate and the market will take more than five years to respond to all the changes that it is witnessing at the moment.

The author is Vice President, External Affairs, Ford India Limited