I don't think the pricing is quite as bad as it looks at first glance. If you look at the feature set, the base model Fiesta is more comparable to competing models a notch or two up. This should make things a bit clearer:
Fiesta Style (base) petrol v. similarly priced competitors - Vento Highline, Verna 1.6 VTVT SX, and City 1.5 S MT
Fiesta Style (base) petrol v. competing base models - Vento Trendline, Verna 1.4 VTVT, and City 1.5 E MT
I guess Ford is positioning the Fiesta as a half segment higher car and leaving the lower end of the segment to the Fiesta Classic. Essentially there simply isn't a version of the new Fiesta that competes with the cheaper versions of similarly sized cars. It seems like Ford is aiming at the price gap between the Verna, Vento, City, Linea, SX4, etc. and the Civic, Corolla Altis, and Cruze. I suppose maybe it could work out well if they can conquer the price range between 9 and 12 lakhs with fancy features (voice control in the Titanium and Titanium+ models, etc.), but it seems like a big gamble. I don't think the Fiesta will sell as well as the Verna, but if Ford can pull off "most desirable sedan under 12 lakhs" perhaps the gain in prestige will be worth more in the long term than some lost sales in the short term.
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