It’s a win-win situation for both Ford India and Gujarat. The former will be setting up an integrated facility, comprising vehicle and engine manufacturing plant, at Sanand which is on its way to become India’s auto hub. Gujarat, on the other hand, has bagged another automobile major after Tata Motors. In an email interview, Ford India president and managing director Michael Boneham told Vinay Umarji how the new plant would accelerate its business. Edited excerpts:
You were in talks with other states as well for the plant. What exactly led you to zero in on Gujarat?
Ford India selected Gujarat because of its pro-business environment, infrastructure, access to ports in north-western India, skilled workforce and the geographic location. Gujarat is one of the fastest growing states, offering favorable manufacturing and investment climate. It contributes 16 per cent to India’s industrial production. In addition, it offers excellent infrastructure support and a stable policy environment that is conducive to the growth of industry. The northern and western region represents over 60 per cent of the passenger car industry. The plant in Gujarat will increase our brand presence in the northern and western region, which is by and large the biggest market for passenger cars.
When Ford began to consider an additional site to construct a manufacturing facility in India, it was almost impossible to ignore the impressive changes and progress enacted by the state government. Gujarat is the ideal shipping and receiving venue due to is strategic location on the west coast of India. It also has an enormous multilingual and highly educated workforce, with some of India’s top universities and technical colleges. The new facility will complement our world-class operations and facilities in Tamil Nadu wonderfully.
How was the Gujarat government different in its approach? What kind of incentives did it offer?
The Gujarat government has been very supportive, and this expansion would not be a reality without its cooperation. The government is helping us develop the infrastructure of the site to make it more conducive to the needs of vehicle production.
It has been learnt that Ford India has been offered a tax holiday, apart from other incentives...
I’m sure the state is well aware of the massive economic impact of a new vehicle manufacturing plant. As such, it is supporting us and helping us ready the infrastructure.