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Ford is all set up to invest Rs.19 billion on making small cars in India and this shows the rapid growth of Indian auto market. The other major auto makers like Fiat, Nissan, Renault, Volvo, Volkswagen, Suzuki and Hyundai, which have also invested and have targeted aggressive expansion in India.
Most of the big investments in India so far are aimed at capturing share of the booming domestic market. Following a partnership with Indian truck maker Mahindra & Mahindra, Indian truck maker Ashok Leyland to make engines and light trucks. Meanwhile, Renault has also joined hands with Bajaj, to make a small car.
There are some auto makers like Hyundai of South Korea, that are making India as a base for manufacturing and exporting, while Maruti Suzuki, India's largest passenger carmaker, plans to give a bigger push with exports to Europe.
India is also explored with other ideas in the field of research and development. Suzuki Motors of Japan recently invested around Rs.70 billion in India, mainly for R&D and marketing, on top of a previous commitment of Rs.78 billion for expansion. According to Carlos Ghosn, chief executive of Nissan and Renault, India has the potential to develop the quality lower cost cars.
GM recently last month opened a design studio in Bangalore will concentrate in the design of interiors for new cars for both India and global markets. The studio is already is accommodated with 1000 Indian engineers in R&D.
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