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Ford invests £250 million in India
By Yoann Besnard on 21 March 2008 | 
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Ford will invest £250 million in India over the next two years to boost its production capacity of small cars from 100,000 today to 250,000 by 2010.
"We have lined up $500 million for our expansion plans in India. By 2010, we will ramp up our installed capacity to 250,000 units per annum from 100,000 units currently for rolling out compact cars, new versions of engines and critical components for domestic and overseas consumption," Ford India vice-president Scott McCormack told newspapers.
The £250 million will be added to the £400 million already invested over the last ten years at the Maraimala factory, located near Chennai, which builds the Ford Ikon, Fusion, Fiesta and Endeavour models. The investment will also be used for the future small car the carmaker plans to launch on the Indian market in 2010. "We are working on the small car programme and will be launching it in 2010", said Scott McCormack, Vice-President, Marketing, Sales and Service. With small and compact cars accounting for over 70-80 percent of total passengers vehicles in the Indian auto market, Ford India wants to focus on volume production to increase its market share.
In 2007 Ford sales suffered from higher interest rates and a competitive market. The carmaker sold 38,000 vehicles compared to 36,000 in 2006. However, Ford sees 2008 as a better year thanks to the Endeavour and the new Fusion Plus.