Ford prices Fiesta well above its competition

Ford India has launched the new Fiesta with prices starting from Rs. 8.23 lakh to Rs. 10.42 lakh (ex-showroom, Delhi). The new Fiesta will be available with two engine; the 1.5 TiVCT Petrol and the 1.5 TDCi Diesel. Each will have 4 trims namely: Style, Trend, Titanium and Tintanium +.

The petrol range prices start at Rs. 8.23 lakh (for Style) and go up to Rs. 9.42 lakh (for Titanium Plus). The diesel range prices start at a whopping Rs 9.27 lakh (for Style) going up to 10.42 lakh (for Titanium Plus).

The pricing approach of Ford is puzzling. Ford was expected to price the new Fiesta rather competitively vis-à-vis Honda City and Hyundai Verna. Ford seems to have done the opposite.

The base petrol version is a good Rs 74,000 costlier than the base Honda City which is priced at Rs. 7.49 lakh. In fact, City has another version, 1.5 SMT which is marginally cheaper at Rs 8.19 lakh.

Things get worse with the diesel version: The base Style variant at Rs 9.27 lakh is a good Rs. 1.18 lakh costlier than base Verna diesel which is priced at Rs. 8.09 lakh. Another strong diesel contender, Volkswagen Vento Trendline comes at Rs 7.99 lakh.

The differences narrow towards the top end of the range (both petrol and diesel) but Fiesta still remains costlier by about Rs. 30,000 and above.

Fiesta is offering dual airbags and ABS on all versions while some of the base versions of competitors don’t have these as standard. But then Fiesta lags two of its powerful competitors—Honda City and Hyundai Verna—on the power front. (Read our comparisons between Fiesta and competition and the specific comparison between Fiesta and Verna diesel variants). Also, both Verna and City are slightly more spacious in the rear.

Based on this pricing approach, it seems that Ford has decided not to chase the number one spot in the Rs 7-10 lakh category. What is your opinion?