New Delhi: Ford India, the local unit of the Michigan-based Ford Motor Co, will set up its second manufacturing facility in the country at Sanand in Gujarat for a total investment of Rs 4,000 crore as seeks to acquire a larger share of the world’s second-fastest growing automobile market.
The project also includes an engine plant. Mint had reported on 27 July that Ford had chosen to base its second manufacturing plant in Gujarat.
“Ford will invest approximately Rs 4,000 crore in the two facilities, which include stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing,” the company said in a release on Thursday. “The vehicle manufacturing plant will have an initial annual capacity of 240,000 units, and the engine plant will have an initial annual capacity of 270,000 engines.”
The factory will be built on a 460-acre site with an ancillary park on adjacent land.
Ford already has a plant in Chennai, where it manufactures cars such as the Fiesta and Figo as well as the sports utility vehicle Endeavour. Ford’s Chennai plant can assemble up to 200,000 cars a year.
“Construction of both plants will begin later this year, with the first vehicle and engine scheduled to come off the line in 2014,” the company said.
Earlier, Ford announced that it plans to launch eight new models in India by 2015 and the second plant will help the company meet local demand as well as export cars to neighbouring countries.
“This is an investment in the future of Ford globally,” said Joe Hinrichs, president and CEO of Ford Asia Pacific and Africa. “These new state-of-the-art facilities will help us reach the goal of increasing worldwide sales by nearly 50% by mid-decade to about 8 million vehicles per year.”
60%-70% of Ford’s growth is expected to come from the Asia-Pacific region over the next 10 years, according to the company.
“We are aggressively expanding in markets around the world that have the most growth potential, in order to offer more of the fuel-efficient, high-quality vehicles from our global portfolio that customers in markets like India want and value,” Hinrichs said.
“The success of the Figo has encouraged the company to set up its second plant in India,” said Sugato Sen, senior director, Society of Indian Automobile Manufacturers Association.
The company has sold more than 100,000 Figos since its launch in April last year.