Ford Fusion. Why Did It Fail In India?

I know it is quite late for an autopsy now. But on my way to work today I spotted a silver Fusion+ and I just felt like writing.

It has no curves, looks like a box and doesn't score on the aesthetic fore, either; but somehow I find the simplicity quite unique and utilitarian. I think the biggest design USP of the Fusion is its crossover look. It is a B-segment hatchback, but the front grille and the gradient of the hatch makes it look like a smaller version of a crossover. Also, a look at the beefy bumpers, curved wheel arches, block headlamps leave you feeling that this beast can, and needs to, go offroad. Moreover, with the amount of headroom and ground clearance, it is way ahead of contemporary hatchbacks in India. And with front MacPherson suspension and 15 inch wheels, you need not let out a silent curse everythime you encounter those out-of-proportion speed brakers in Indian cities.

Moreover, with an in-line 4 cylinder, 16-valve, 1.6-liter twin-cam Duratec engine churning out 100 horses at 14.9 kgm of max torque, this car offered one of the best in-its-class engine and powertrain options. What more, there is a 1.4-liter 67 bhp Duratorq diesel engine with a maximum torque of 16 kgm @ 4000 rpm, this car was loaded, atleast by Indian standards.

Then why did this wonderful set of wheels not do well in the Indian market, the way it did in Europe? The first obvious reason is the price. At INR 604,695 or USD 13,400 (base petrol) and INR 698,193 or USD 15,500 (base diesel), the Fusion is a luxury Indian consumers would rather not 'indulge' in...yet. Did Ford not do its homework on the Indian consumer and the market dynamics? Probably, yes. For 6 lakhs, you can very well manage to get a C-segment car, an Esteem or an Ikon or an Accent, maybe. The Fusion in India HAS to be bought by an individual belonging to the middle class or the upper-middle class. This section of the market would rather have a C-segment car if they invest a year's salary or slightly more on a car. This is the criteria on which four-fifths of vehicle purchase decisions are made here.

Having said this, I would also like to point out that there is also a niche consumer base of young people with high spending capacity. These individuals are technically aware of the advantages that the Fusion has to offer like, ABS, collapsable steering column, engine immobilizer, crumple zones, etc., and would buy the Fusion for what it really has to offer. Unfortunately, they still do not drive volumes in India. But for the majority Indian consumers the Fusion's technical superiority over other cars in the same segment is beyond perception.

On the other hand there are high net worth people, or the affluent, who are aware of what the Fusion has to offer; but with the amount of money they have, they would rather buy premium brands.

Now, to the magic figure that Indian buyers swear by. Yes, mileage. The petrol engine gives around 10 kmpl (23.5 mpg) and the diesel around 17 (40 mpg) in the city. How do the other cars in the same segment fare? This should make it obvious

Hyundai Getz Prime - 13.1 kmpl (31 mpg)

Maruti Suzuki Wagon R - 14 kmpl (~33 mpg)

Maruti Suzuki Swift - ~12 kmpl (28.2 mpg)

Tata Indica Xeta - 12.6 kmpl (~30 mpg)

Fiat Palio Stile - 12.5 kmpl (29.4 mpg)

All the compared fuel efficiencies are for their respective petrol engines and the engine capacity falls between the 1.0 to 1.2 liter range. However, I am aware of the fact that this is not 'apple-to-apple' comparison because the Fusion's 1.6 liter engine is far more powerful. The fully loaded variants of the Getz Prime (Petrol) and Swift (Petrol) cost around INR 550,000 (~USD 12,000) which about 50 grands lesser than the Fusion.
The chart explains why the Ford Fusion did not fare well in the Indian market. Ford placed a product in a slot that typically belongs to the luxury/premium cars in India.

Maybe, what Ford could have done is intoduced the 1.3-liter engine Ka rather than the Fusion. The Ka is a huge hit in Europe and is priced around 45% lesser than the Fusion. It has the same power to weight ratio as the Fusion and gives a mileage of around 13.4 kmpl (31.7 mpg) in urban driving condition. The Ka would have really helped Ford help enter the small car-segment.

Indian buyers want both performance AND economy in their vehicles and the segmentation of market based on the two is not as crisp as in Europe or America.

Another interesting fact, though on the sidelines, is that with the 35 mpg (14.7 kmpl) fuel ecomomy being made mandatory in USA by 2015, the Big 3 are gradually focusing more on producing fuel economic cars. In this regard, it would help Ford (and GM and Chrysler too) a big deal if it seriously considers tweaking the 1.3-liter Duratec engine to make it more fuel efficient and, maybe, launch a Ka for India.

Another, flaw which led to the failure of the Fusion in India was wrong marketing and publicity. The Fusion was launched in India in December 2004 and it had a head-start over the Swift. I am specifying Swift because, it is comparable to the Fusion in terms of the safety features offered. What Swift did right in its awareness campaigns was to highlight its advanced safety features. It has created new awareness among consumers and competition among OEMs in India. But Ford was in a position to be the pioneer in India to drive the awareness in safety features in India, which they did not. Simply put, they should have portrayed the Fusion in its true image - a car with advanced safety features, build for performance and nimble handling.

All said and done, the Fusion is REALLY a nice and contemporary car. Its weak points being bad fuel economy and premium price. I mean, if we can accept a Korean monstrosity like a Santro (looks-wise) and an ugly car like Tata Indigo, the Fusion should have got a fairer deal.

Note: I have used images from from public domain, except the chart I created. If any copyrigt or ownership issues are violated, I would willingly put out the specific image/s