Ford India is planning to make an investment of Rs 5,000 crore setting up a car assembly and engine plant in the Sanand auto hub in Gujarat. The new facility will increase the company’s manufacturing capacity to more than double its existing capacity in India. Mr. Joe Hinrichs President of Ford Asia Pacific and Africa states that the investment is a based on the company’s high expectations of the Indian automobile market.
Ford is coming to terms with the India being a small car driven market and is now developing products according to the Indian preferences rather launching successful products from its global portfolio. It expects to capture a larger chunk of the market with smaller cars such as the Figo.
Industry experts however state that the company will need to adapt to the rapidly changing preferences of the Indian consumers and compete with the well established players in the region such as Maruti Suzuki, Hyundai and Toyota.