Chennai: Ford India Pvt. Ltd said it has invested $72 million to double the annual diesel engine production capacity to 160,000 units at its four-year-old Chennai plant, a move that could help feed the rising demand for cars running on the cheaper fuel.
The Indian unit of the Detroit-based automotive company, which has seen monthly sales volume in India slip over the past five months amid increased competition from market leaders Maruti Suzuki(India) Ltd and Hyundai Motor India Ltd and a shift to diesel-run cars, expects sales to rebound in the July-September quarter as the waiting period for its diesel cars shrinks and the festive season kicks in.
“With this capacity addition, we should be able to support rising diesel demand,” Michael Boneham, president and managing director of Ford India told reporters on Tuesday at the company’s plant in Maraimalai Nagar, 40 km from Chennai.
“We should see a turnaround in sales by the third quarter of this year when we expect the festive season to renew confidence.”