Ford coming to Gujarat, production to kick-off in 2014

Friday 16 September 2011, 18:01 PM by

US auto giant Ford has chalked out plans to lay down the foundation stone of the 2nd assembly and engine plant at Sanand, Gujarat in India. The project is expected to invest around $900 million to build the vehicle assembly and engine plant in the country. Ford is making every possible effort to make use of the golden chance where in, the Indian auto market has forever vowed the car makers to accept their product with open arms. Also, the Indian buyers do not hesitate in experimenting with new vehicles, provided the car maker has that potential to lure them. The new plant at Sanand, Gujarat will create employment for around 5000 persons and if plans are to be believed, the plant would be laid near Tata Nano’s mother plant. The production is expected to start-off in 2014.

As a matter of fact, the first plant by Ford in India that started manufacturing vehicles locally was built in Chennai, Tamil Nadu, in 1998. The recent move is believed to have been implemented in order to double-up the efforts of the company to ascent the quantity of supply and to make its presence felt not just by launches, but by products that are diverse in themselves. Ford aims to have an effective market share in the country where auto sector is growing at a fast pace.

The government of Gujarat has decided to allocate 400 acres of land at Sanand to the company. Sanand is located at a distance of 40 km from Ahmedabad. Another important point about the location is that Gujarat’s coastline and building ports have worked wonders and proved to be the major factor that has lured big names in automobile to be a part of Gujarat. Among the giants of the industry, automobile manufacturers such as General Motors Corp. and India’s Tata Motors Ltd have already cashed in the opportunity. Moreover, the state is considered as the most advantageous and efficient places amongst the others, in this field of business.

Ford’s decision to set up another facility in India is believed to be inspired by news pouring in regarding Maruti Suzuki's tip-off of being keen to build a plant in Gujarat. Another celebrated car company that is mulling upon roping in Gujarat to manufacture its vehicles in India is French car maker PSA Peugeot Citroen. Peugeot Citroen officials have already paid a visit to the state and are heading towards the process of fulfilling formalities and finalising the project and join the league of other plants that are neighbours of Tata Nano plant. A formal statement from Peugeot is likely to be out in as month or so.

Ford company's share in the Indian market is 3 percent at present, compared to 17 percent in the U.S. and 10 percent in Brazil. The auto giant currently sells four models in India and has plans of introducing seven more in the next few years.

Ford, as of now, is focussing majorly on the small-car segment of the market, which contributes for about 70% of all new-car sales. Thus, the U.S auto maker plans to make a huge impact on the Indian auto market along with others big names that are already in or about to get related to the market.

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