Ford developing a small car (B563) for India & emerging markets

[rmc523]

http://www.autocarindia.com/car-news/scoop-ford-developing-premium-hatch-to-take-on-i20-and-baleno-405580

 

 

 

SCOOP! Ford developing premium hatch to take on i20 and Baleno

2nd Aug 2017 6:45 pm
Ford’s B563 platform for India will be the base for a new hatchback and mid-size sedan

Ford’s India operations are set to get a boost with a range of all-new models coming off a new platform that is being developed for India and other emerging markets.

This new platform (Code: B563) will cater to higher segments and, according to company sources, the first model off of it will be a premium hatchback, positioned above the Figo, squarely going up against the hot-selling Hyundai i20 and Suzuki Baleno. This will be followed by a mid-size sedan, which again will sit above the Aspire and rival the Honda City, the segment king, and essentially fill the gap left by the Fiesta after it was discontinued in 2015.

“The Fiesta (B299 platform) was essentially a car made for Europe and the cost structure was too high for India and that made it unviable. The B563 platform allows us to be far more cost efficient which is the key to competitive pricing in India,” says a Ford official on condition of anonymity.

However, it will be a while before B563 reaches showrooms. Both the hatchback and sedan are not expected before 2020. Also, they are being designed to meet future emission regulations which are set to get all the more stringent beyond 2023, when the Real Driving Emissions (RDE) test cycle is expected to be implemented. This means a new range of clean petrol and, in particular, diesel engines will have to be developed by then. To be future-proof, Ford will manufacture its state-of-the-art ‘Dragon’ family of small displacement petrol engines in India to power its future compact model range. In fact, the Dragon engine family hasn’t been launched yet and the global debut of this new powerplant will be in India in the coming weeks. Ford’s diesel strategy is not clear but it’s likely that when RDE kicks in the 1.5-litre DV5 diesel may be phased out as all small diesels will struggle to meet the tougher regulations.

For long, Ford has mulled various options to fill the gap in its portfolio above the Figo and Aspire. The American carmaker faced a major setback when an all-new compact car family based on a new platform (code: B500) was inexplicably shelved. The B500 was to be an all-new, grounds-up platform and would have had to rely on huge volumes to justify its massive development costs. Hence, China was expected to be the lead market for the B500 but the volume potential even in the world’s largest car market wasn’t encouraging. “The Chinese small car market was not showing any significant signs of growth as most buyers were shifting to SUVs,” according to a source.

The B563 platform is a more viable way forward as it is not a grounds-up, all-new architecture but a modified or upgraded version of the current B562 platform underpinning the Figo and Aspire. So, will the B562 and B563 platforms co-exist? Yes. The plan is to refresh the Figo and Aspire with extensive facelifts and reposition them a segment lower to minimize overlap with the more upmarket B563 products.

Ford clearly needs new products to boost its market share in India, which is hovering at a minuscule 3 percent. The Blue Oval has a long way to go before it can make a dent in this market, but after being at the crossroads for the past year or two, the B563 is finally a direction forward.

 

 

The terms "premium" and "mid-size" apply to local Indian classifications, this is technically a B-segment car that will take the place of the Fiesta which was dropped from the Indian Ford lineup in 2015.

[tbone]

This would also suggest that Ford is NOT exiting the Indian market, would it not?

[jpd80]

This would also suggest that Ford is NOT exiting the Indian market, would it not?

You'd hardly develop a car specifically for the Indian market (or BRIC) just to leave it

What Ford will probably do is pull back on vehicles that don't work and try others with a better chance of success.

 

The premium hatchback will be slotted above Figo in Indian portfolio and it will go up against the likes of Hyundai Elite i20 and Maruti Suzuki Baleno. The mid size sedan, on the other hand, will be pitted against the Honda City.

"The Fiesta (B299 platform) was essentially a car made for Europe and the cost structure was too high for India and that made it unviable. The B563 platform allows us to be far more cost efficient which is the key to competitive pricing in India," the publication quoted a Ford official on condition of anonymity.

 

Though the works on the premium hatchback are underway, it will not see the light of the day before 2020. Ford reportedly wants the car to be future ready and compliant to regulations beyond 2023. The car may also get a new family of Ford engines due in 2019.

 

https://www.ucnews.in/news/Baleno-and-i20-Elite-beware-Ford-India-has-a-Plan-B563/3331643264373239.html

 

Edited August 4, 2017 by jpd80

[akirby]

Figo is sold in India, South Africa, Middle East and Mexico.

[bzcat]

This is the "low cost" replacement to Fiesta in markets outside Europe.

 

The "midsize" sedan in context of Indian market is a B+ sedan like Nissan Versa or Honda City.

 

Expect this car to be slightly bigger than the new European Fiesta and smaller than the Escort.

[MKII]

Off topic, but of interest for Asia Pacific market.............

Ford Lio Ho Motor Company Ltd. Key Developments

Ford Lio Ho Motor to Invest USD 130 Million in Taiwan to Upgrade Production Processes

Feb 17 17

Ford Lio Ho Motor plans to invest TWD 4 billion (USD 130 million) in its plant in Chung Li to upgrade its production processes and assemble the Escort sedan. As part of a programme to improve the quality of Ford vehicles, the new investment will mainly involve the purchase of new equipment and introduction of intelligent production.

Source https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=32609528

[bzcat]

I posted the Escort production in Taiwan in a different thread a couple of months ago.

 

This is a vote of confidence in continuing vehicle manufacturing for Ford in Taiwan, which has seen its market share erode significantly from #1 in the market 30 years ago to #7 or #8, and routinely being outsold by importers like Mazda, VW, and Mercedes. Basically the same story as Ford Australia, except Ford is not pulling the plug on local production.

 

I don't think Escort is engineered for RHD, otherwise it will be a good vehicle for Southeast Asia and Australia as well. Maybe the next generation will have a more global footprint than just China.

Edited August 4, 2017 by bzcat