Ford launched the Ecosport in India at an aggressive price point of Rs.559,000
onwards, which positions the vehicle against entry sedans and compact SUV’s.
The ‘Ecosport’ has been a successful global model for Ford, with the vehicle
being launched in BRIC markets including Brazil, China and India. Our analyst
in Brazil Cassio Lucin highlights that the EcoSport has been a success there and
is also attracting passenger car buyers.
The Brazilian experience: The new Ford EcoSport was launched in Brazil in
August 2012 (the car is built over the New Fiesta Platform). YTD 2013, Ford
has sold 27,000 units vs. 12,000 units y/y, although it is not comparable as it
was phasing out the older model. With the EcoSport, Ford has 40% market
share in this category (compact SUV), and a 2.5% market share on all passenger
vehicles sold in Brazil through 2013. This is a new category growing fast in
Brazil as the customers have developed a taste for compact SUV’s. The main
competitor for the EcoSport is the Renault Duster (also manufactured in Brazil).
Ford EcoSport launched at an aggressive price point in India, inline with
entry sedans: Ford’s four meter SUV ‘EcoSport’ has been launched at a
competitive price of Rs.559,000 (1.5L petrol) and Rs. 669,000 (1.5L diesel) - the
pricing is at a sweet spot between premium hatchbacks/entry sedans and
compact SUVs. The model will compete with entry sedans such as the Maruti
Dzire as well as the compact SUV’s such as the Mahindra Quanto and Maruti
Ertiga, amongst others.
In Brazil, Ford offers two engine options, 1.6 (115 hp) and a 2.0 (147 hp) both
Flex-Fuel engines and 4x2 wheel version. The car is 4.24 meters long and is
sold for roughly US$25,000. In India, the EcoSport will come with a 1.5L
diesel, 1.5L petrol & 1L petrol EcoBoost engine, it is sub 4meters in length (to
avail of tax incentives) and is priced at ~ $12,000 here.
Our View: The EcoSport will compete with entry level sedans and compact
SUV’s. We re-iterate our UW stance on Maruti given that while Indian auto
sales are in the midst of a multi year slowdown, the competition is eyeing
Maruti’s sweet spot by launching products in the price range of Rs.600,000–
800,000. We are OW on Mahindra, given the revival in tractor sales over the
year.
Table 1: Ford EcoSport –India and Brazil variants
Brazil India
Type of Fuel Flex Fuel Petrol, diesel
Length 4.24m 4m
Engine Power 1.6L (115bhp); 2L (147bhp) 1.5L petrol (110bhp), 1.5L diesel (91bhp)
Pricing US$ 25,000 US$ 12,000
Source: J.P.Morgan, Company
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onwards, which positions the vehicle against entry sedans and compact SUV’s.
The ‘Ecosport’ has been a successful global model for Ford, with the vehicle
being launched in BRIC markets including Brazil, China and India. Our analyst
in Brazil Cassio Lucin highlights that the EcoSport has been a success there and
is also attracting passenger car buyers.
The Brazilian experience: The new Ford EcoSport was launched in Brazil in
August 2012 (the car is built over the New Fiesta Platform). YTD 2013, Ford
has sold 27,000 units vs. 12,000 units y/y, although it is not comparable as it
was phasing out the older model. With the EcoSport, Ford has 40% market
share in this category (compact SUV), and a 2.5% market share on all passenger
vehicles sold in Brazil through 2013. This is a new category growing fast in
Brazil as the customers have developed a taste for compact SUV’s. The main
competitor for the EcoSport is the Renault Duster (also manufactured in Brazil).
Ford EcoSport launched at an aggressive price point in India, inline with
entry sedans: Ford’s four meter SUV ‘EcoSport’ has been launched at a
competitive price of Rs.559,000 (1.5L petrol) and Rs. 669,000 (1.5L diesel) - the
pricing is at a sweet spot between premium hatchbacks/entry sedans and
compact SUVs. The model will compete with entry sedans such as the Maruti
Dzire as well as the compact SUV’s such as the Mahindra Quanto and Maruti
Ertiga, amongst others.
In Brazil, Ford offers two engine options, 1.6 (115 hp) and a 2.0 (147 hp) both
Flex-Fuel engines and 4x2 wheel version. The car is 4.24 meters long and is
sold for roughly US$25,000. In India, the EcoSport will come with a 1.5L
diesel, 1.5L petrol & 1L petrol EcoBoost engine, it is sub 4meters in length (to
avail of tax incentives) and is priced at ~ $12,000 here.
Our View: The EcoSport will compete with entry level sedans and compact
SUV’s. We re-iterate our UW stance on Maruti given that while Indian auto
sales are in the midst of a multi year slowdown, the competition is eyeing
Maruti’s sweet spot by launching products in the price range of Rs.600,000–
800,000. We are OW on Mahindra, given the revival in tractor sales over the
year.
Table 1: Ford EcoSport –India and Brazil variants
Brazil India
Type of Fuel Flex Fuel Petrol, diesel
Length 4.24m 4m
Engine Power 1.6L (115bhp); 2L (147bhp) 1.5L petrol (110bhp), 1.5L diesel (91bhp)
Pricing US$ 25,000 US$ 12,000
Source: J.P.Morgan, Company
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