It is reported that auto major Ford India Pvt Ltd would sign a second MoU with the Tamil Nadu government soon. The proposed investment will be for increasing the current capacity by 100,000 cars and 250,000 engines.
The report quoted Mr Michael Boneham president & MD of Ford India as saying that the company proposes to invest INR 2,000 crore which will be in addition to the USD 400 million that it invested previously in its facilities and products.
Mr Boneham said that the company was also in the process of setting up a wet paints shop at its factory in Maraimalai Nagar.
He added that to strengthen its presence in the domestic passenger car segment, the company would launch a car every year and new models of the existing variants. Mr Boneham said that “We will start with the small car, which is scheduled to launch in early 2010 and another new model in 2011, which may be another small car.”
The proposed small car would allow the company to enter the sub four meter segment, which holds 70% of the market share in the country’s passenger car segment. Localization in the proposed car would be 85 per cent.
Mr Nigel E Wark executive director marketing, sales and service of Ford India said that “We will also give thrust on exports and will make Chennai our export hub.”
He added that the small car would be for both domestic and export markets. It would focus on African and Asia Pacific countries.
