US auto maker Ford Motor today reiterated that its $500-mn capacity expansion plans for India and launch of small car are "well on track" despite the slowdown squeezing the growth of Indian auto industry.
"We are committed to our investment plans which have been announced for India and there is no slowdown in this regard (in present circumstances)," Ford India Private Ltd Executive Director Nigel E Wark told reporters here today.
The company this year had announced to invest $500 mn for expanding the assembling capacity of cars from 1 lakh units to 2 lakh units and set up an engine manufacturing facility for 2.5 lakh units by 2010 in Chennai.
With regard to launch of proposed small car for Indian market, he said the company is also committed to bring out small car by 2010.
He acknowledged that the industry had witnessed reduction in demand for cars in view of several factors including credit crunch and further said that the major impact was visible in Tier I cities. "Because of these factors, the demand for cars in Tier 1 cities has been hit hard," he said.
Society of Indian Automobiles Manufacturers (SIAM) yesterday announced seven per cent fall in sales of passenger cars and 36% dip in commercial vehicles in the month of October 2008 over the same period last year.
However, he said that the company had very flexible manufacturing operations and dealers were keeping low inventory to deal with the reduction in demand situation.
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