Saturday, May 03, 2008

Ford Wants to Make India Manufacturing Hub for Engines in Asia Pacific and Africa Region

To take the advantage of India’s low production cost, Ford India is now contemplating to increase its production of engine in India so that the company can offer competitive price for its engines in the global market. In fact, the car maker is going to make India its engine manufacturing hub in the Asia Pacific & Africa (APA) region. Currently, Ford India is producing 60,000 engines per year and the company’s goal is to take it to 2.5 lakh engines per year. It is part of the company’s plan to invest Rs 2,000 crore to increase the annual production of engines and vehicles in India. However, Ford has seen a 19% decline in its sales Indian in FY08. So, Fords has taken Indian market very seriously and Ford India designate president & MD, Michael Boneham, has said that the company is coming with a series of plans increase its sales in the domestic market.

Economic Times reported:
“Ford is changing perspective towards global models. We are looking at ways to make these products part of our India strategy including the new Fiesta, which is part of our global platform of new products. We are aware of the declining sales in India and will soon come out with a series of plans to turn around sales,” Mr Boneham said.

Ford India may introduce its next generation Fiesta compact cars in India. The company wants to produce 2 lakh cars in India by 2010. It is definitely a good initiative taken by Ford. India’s economy is growing and its auto market is also expending rapidly. So, it is perhaps the perfect time to invest in the country. Moreover, cheap production cost will be an advantage for Ford. I think, India will also be beneficial by this move because Ford will have to employ more people to increase its production and thus many people will have employment in India.