US-based car maker Ford’s Indian subsidiary, Ford India, will start making engines at its Tamil Nadu plant for its facilities in the Asia Pacific and Africa regions in the first half of 2010. It also plans to bring in more hatchback models from the Ford stable to India in the coming years.
The company plans to position India as a strategic hub for low-displacement powertrains for Ford facilities in the region. “We will make six to eight types of power trains. The volumes will depend on demand”, said Ford India President and Managing Director Michael Boneham. He added the company would be ready to produce 250,000 engines per year together with its small car, ready for launch in the first half of next year. It is in the process of investing $500 million on its small car project and its engine plant in Maraimalainagar near Chennai. “We should complete our investments within the end of this year”, Boneham said.
It will make sub-1.2 litre petrol and sub-1.4 litre diesel engines at this plant. “We have currently started producing 60,000 diesel engines at the power-train plant and will eventually ramp up to 250,000”, Boneham said.
As for its small car, the company is looking at markets in the Asean, Africa and Australia, besides India. “We sell the Ikon in South Africa and Mexico, but are looking at a much broader market for our small car”, Boneham said. The company plans to export around 10 per cent of its production in the first year but has not yet set any specific target for exports as of now. Boneham declined to give the intial production planned. He, however, confirmed that trial production had started.
The Ford small car will have around 85 per cent localisation.
Ford India sold around 30,000 vehicles in India last year and expects to end this year flat. It, however, is betting big on its small car, a segment where it is currently not present, to increase sales manifold in 2010. It is also in the process of expanding its dealership network from around 90 in 2008 to over 153 by the end of this year. Boneham said, “India is primarily a small car market where around 85,000 such cars are sold per month. We plan to bring in more small cars from the Ford stable to India in the coming years".