Ford India today launched a diesel version of its sports utility vehicle, the Endeavour. The company will also launch a diesel variant of its mid-size car, the Fusion, by the third quarter of this fiscal.

“The diesel variant of the Fusion will enable us to have a robust portfolio,” said Arvind Mathew, president and managing director of Ford India.

Diesel models are becoming more popular with the rising fuel prices. Analysts predict that diesel vehicles will have a 35 per cent share by 2010 against 30 per cent at present.

Mathew said Ford was concerned over the rising interest rates because it was affecting sales. The company may revise downwards its growth target for the fiscal if the rising rates continue to hit demand.

He said demand was lower in April and May.

“We are keeping a tab on the sales in June and July,” Mathew said.

Ford India sold 41,797 cars in 2006-07, an increase of 45 per cent over the previous year. It aims to maintain its market share and is planning to double production to 2 million units by 2010. Ford makes 60,000 vehicles a year at its Chennai plant.

The company said it was studying various “localisation opportunities” to cut costs and compete more aggressively in the price-sensitive market.

The new Endeavour, priced between Rs 14.7 lakh and Rs 15.62 lakh (ex showroom Delhi), is powered by a 2.5-litre diesel engine.

Ford has sold about 7,000 Endeavours since its launch in 2003 and is betting on the car to enhance its share in the premium SUV market.

The company has a 38 per cent share of the 15,000-units-a-year market.

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