"We would not be doing that [$2 billion investment] if we didn't believe that we could create value," Ford CEO Alan Mulally said yesterday at a program hosted by the U.S. India Business Council, according to the Detroit News.
Mulally stated that Ford isn't worried about long-term development in India, where it plans to launch eight new cars over the next few years. The Michigan automaker's most visible recent product investment in India is its new EcoSport SUV, which was designed primarily for the market.
Ford has stated that its expansion plans should boost India to become its third-largest market in just eight years, and the automaker is looking to aggressively capitalize on India as a low cost manufacturing base to supply much of Asia with products.
Despite a rapid growth in distribution - a new Ford dealership or service facility is opened every 10 days in India - vehicle demand in the country appears to be leveling off.
But Mulally told the group that India is "a tremendous market long term. I think we ought to keep thinking of it long term."
