Set to sign second MoU with Tamil Nadu government
Auto major Ford India Pvt Ltd would sign a second memorandum of understanding (MoU) with the Tamil Nadu government soon, said Michael Boneham, president and managing director, Ford India.
The company proposes to invest Rs 2,000 crore, which will be in addition to the $400 million that it invested previously in its facilities and products, he told Business Standard. The proposed investment will be for increasing the current capacity by 100,000 cars and 250,000 engines.
Earlier speaking to reporters, Boneham said the company was also in the process of setting up a wet paints shop at its factory in Maraimalai nagar, near here.
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. Ford earlier used to launch a car every three years. This apart, it would add 20 new dealers this year to its existing 93 across the country.
“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,” he said. The proposed small car would allow the company to enter the sub-four metre segment, which holds 70 per cent of the market share in the country’s passenger car segment. Localisation in the proposed car would be 85 per cent.
“We will also give thrust on exports and will make Chennai our export hub,” said Nigel E Wark, executive director - marketing, sales and service, Ford India. The small car would be for both domestic and export markets. It would focus on African and Asia-Pacific countries.
Meanwhile, the car manufacturer has decided to shift its export base from Mumbai port to Chennai. “So far we were exporting from Mumbai in a CKD form, which in turn was assembled at our South African plant. This was adding to the cost,” he said.