Ford has announced that it will invest $500 million into doubling its Indian production capacity by 2010. The investment brings Ford’s total investments in India to $875 million. India is quickly become Ford’s production hub for the Asia-Pacific region.
Ford recently made similar investment in Thailand and China, two other markets critical for Ford’s overseas growth plan. “We see China, India and ASEAN as three important markets for increasing our Asia-Pacific footprint,” John Parker, executive vice president for Asia-Pacific and Africa, told Automotive News.
The investment will boost Ford ’s Indian car production to 200,000 units by 2010. In addition, Ford will also build an engine plant capable of producing 250,000 gasoline and diesel engines annually.
The Dearborn-based automaker also plans to launch a new small car within the next two years in order to capture a bigger share of the market. However, the new car won’t rival Tata’s $2,500 car set to debut on Thursday. “We’re not going to be in that area (of $2,500-$3,000). We’re focused on the heartland of the market, the 300,000-400,000 rupee ($7,600-$10,100) range,” Parker said.
Tata was recently named as the preferred bidder for Ford’s Jaguar and Land Rover brands.
