US auto giant Ford said on Thursday (July 29) that it would invest $1 billion (£613 million) to build a vehicle assembly and engine plant in India as it ramps up production to exploit the country's burgeoning car market.
The new factory in the western state of Gujarat will employ around 5,000 workers and will be the firm's second in India.
"Ford has very aggressive expansion plans in India and in Asia Pacific and Africa," Joe Hinrichs, president of Ford Asia Pacific and Africa said.
This new investment "will be important in realising our growth strategy," Hinrichs said, calling India "one of the most dynamic regions in the world."
The facility in Sanand, 40 kilometres (25 miles) from Gujarat state's main city of Ahmedabad, will have an initial annual capacity of 240,000 vehicles and 270,000 engines.
Ford already has a plant near the southern Tamil Nadu port capital of Chennai, where it manufactures small cars such as the Fiesta as well as the Endeavour sports-utility vehicle. Ford's Chennai plant can assemble up to 200,000 cars a year.
The US group will begin building on the Gujarat site this year with the first vehicle and engine slated to come off the assembly lines in 2014.
Thursday's announcement brings the US car giant's total investment in India to some $2 billion (£122 million).
The company aims to introduce more products from its global portfolio and other Asia Pacific and African markets into India as it seeks to tap the country's growing domestic car market.
