Ford plans to make India its APA hub for engines

Ford India will start making engines for export to Asia-Pacific and Africa regions, within the next two years

Ford India plans to make India its strategic manufacturing hub for engines in the Asia Pacific and Africa (APA) region. Ford will export petrol and diesel engines from India to South Africa and other countries in the APA region in the next two years. From the current 60,000 engines per annum, Ford India wants to increase its engine production capacity in Chennai to 250,000 engines per annum. This is part of Ford’s strategy to invest Rs 2,000 crore, to increase the production of engines and vehicles in India by the year 2010.

Michael Boneham, the new president and MD at Ford India, says that Ford wants to source engines from India for adjoining markets. He said that while locally-produced engines are already meeting all of Ford India’s domestic requirements, the company wants to start exporting engines in the next phase of expansion. The company wants to take advantage of India’s low-cost operations, and produce engines that are price competitive around the world.

With it market share in India having fallen to 19% in FY08, Ford India also wants to introduce new cars in the Indian market, and implement new marketing strategy to improve its position in the Indian market. For this, the company may look at introducing the brand-new Fiesta and its other global cars in India, to take on the likes of Toyota, Honda, Skoda and Hyundai.

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