Ford India to invest $500 million in small car, engine exports

Our Corporate Bureau
08 January 2008

Chennai: Ford India Pvt Ltd has decided to make a small car in India 10 years after it set up operations in the country. The company says it will introduce a small car in India some time in 2010 at its Maraimalainagar plant near Chennai.

Ford will also start exporting engines out of its proposed 2.5 lakh units integrated engine plant.

The two proposed projects will involve an investment of $500 million and will be funded through a mix of equity and debt.

The investment will qualify for the super mega project definition of the Tamil Nadu government to be eligible for attractive tax incentives.

With this announcement, Ford Motor's total investment in India will go up to $875 million.

Speaking about the two new projects, Arvind Mathew, managing director & president, said that by 2010, the total vehicle production capacity will be doubled to 2 lakh units.