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Small cars have created a sensation in the Indian car market attracting other major car players to join the race. They are small and affordable and that is the reason for their popularity in the Indian car market, Ford India also plans to join the battle and rule the in the small car segment. Their small car project details are yet be specified and finalized but the company plans to start the production in two years.
With the investment of Rs.34 billion, this project is the part of their strategy to expand its operations in India
In the year 2007 Ford’s expansion in Nanjing in China and Thailand for building up small cars was seen and in the year 2008, India also joined the league. Ford Motors is also expected to set a fully integrated and flexible engine manufacturing plant by 2010 for both petrol and diesel version.
The expansion plan for India has already embarked and will be implemented in phases over the next three years. The first phase that is currently underway includes the addition of a diesel engine assembly plant at the Chennai site with the capacity of producing 500 units. This is the first time that Ford is making diesel engines outside Europe. And the first engines that are expected to be out will be used in the local production of Ford Fiesta and Ford Fusion.
Once the expansion strategy is on stream an additional of 9000 new jobs would be created of which 1500 jobs would be direct employment and 7,500 indirect - as Ford India considerably increases its supplier base to meet the expanded production volumes.
Ford’s small car project will be definitely a worthy addition to the already successful and robust product mix offered to Indian buyers, further strengthening their competitive position in the increasingly dynamic car market.
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