US AUTO giant Ford is to set up a second production plant in India as part of its expansion in one of the world’s fastest-growing car markets, reports said today.
The report came the day after Ford said it was looking to step up global production by 50 per cent by 2015 to eight million and expected Asian markets, particularly India and China, to make up one third of total sales.
The financial daily Mint said the Ford India manufacturing facility will either be in Gujarat or Maharashtra, and a decision will be taken at a board meeting later this week.
The newspaper sourced five people familiar with the matter. Ford India declined to comment but a spokesman was quoted as saying that it was “exploring other options” in addition to expanding its existing Tamil Nadu plant.
Ford India’s marketing director, Nigel E Wark, added: “We have already invested $600m (£366m) in India and going forward the investments will be significant.”
One unnamed source said that the firm had been in talks with a number of states but had narrowed down the choice to Gujarat and Maharashtra, both of which are already home to a number of leading auto-makers.
Possible locations include Sanand in Gujarat, where Tata Motors produces the low-cost Nano, and around Chakan, near Pune in Maharashtra, where Volkswagen, Fiat India, General Motors, Mahindra and Land Rover all have facilities.
An unnamed Gujarat state government official was quoted as saying that Ford India officials had met them at least three times in the last two months and they had offered them 500 acres (202 hectares) of land at Sanand.
