
Ford has sold more than 100,000 Figos in the 15 months since its 2010 intro, and is exporting Figos from its manufacturing facility in Chennai.
Ford Motor Company announced today it will build an integrated manufacturing facility and an engine plant in Sanand, Gujarat, India.
Representatives from Ford and the State of Gujarat signed a memorandum of understanding for the $1 billion investment in the two plants. Included in the price are stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing.
India is projected to become the world’s third largest light vehicle market by the end of the decade behind China and the U.S.
More than 2.7 million passenger cars and light-commercial vehicles were sold in India in 2010, up from just 700,000 light vehicles in 2000. India, a country with a population of nearly 1.2 billion, is expected to reach 11 million light-vehicle sales by 2020. (See India to be Third Largest Auto Market behind China and U.S.)
The vehicle manufacturing facilities will have an initial annual capacity of 240,000 units, and the engine plant will have an initial annual capacity of 270,000 engines. Ford’s investment will also create 5,000 jobs at the new facilities.
Ford in a statement said it selected Gujarat because of its pro-business environment, infrastructure, access to ports in northwestern India and skilled workforce. The new facilities will allow access from operations at the new manufacturing site to the heartland of the critical north and western India regions, where the largest share of the country’s passenger car industry exists.
Construction of both plants will begin later this year, with the first vehicle and engine scheduled to come off the line in 2014. In 2010, Ford announced it would bring eight new vehicles to India by mid-decade. Ford currently has a vehicle manufacturing plant in Tamil Nadu and is expanding its engine plant there.
This additional investment brings Ford’s total investment in India to approximately $2 billion. Currently Ford employs more than 10,000 people in India across its manufacturing, global business services and IT operations.