Ford India believes that its upcoming compact SUV Ecosport will not be affected by the recent proposal to hike excise duty on SUVs, even as the car maker is betting on the growth of the compact SUV segment to pull it out of a slowing market.
“The compact SUV category has done well even in challenging times, and we are confident that it will help us. We have received some clarification from the Government that models like the Ecosport will not be impacted, though the fine print still needs to be studied,” said Joginder Singh, Managing Director, Ford India.
“There are certain cut-offs in the criteria, such as ground clearance, and our interpretation is that the Ecosport will not come under this. The Endeavour, however, will be affected,” he added, while addressing reporters here on Thursday.
The company is also hoping that the Ecosport will be able to replicate the success of the Figo in the export markets—which is now exported to 37 countries from the Ford plant near here.
“The upcoming plant in Gujarat, which will be operational next year, will also be used as an export hub for our vehicles and engines,” said Mr. Singh.