Ford is focussing its investment plans on the fast growing market of India to take the advantages of low production cost. Ford India has present in India from last twelve years and already has a manufacturing plant in Chennai to manufacture its cars and engines and now it plans to more than double its investment in India for the production of small car and to for an engine manufacturing plant to develop a manufacturing and exporting hub in India for its small cars.

Ford announced that it will increase investment in India by $500 million, and raising its total investment by $875 million to make the India a regional hub for small car manufacturing and exporting to take advantage of low labur and low raw material cost which enables it to gain a competetive advantage in the Indian and overseas car market and to increase their presence in Asia's booming car market.

Ford India vice president (sales) Timothy D. Tucker said that they are focus to India and China, which offer huge markets and they estimate that by expanding their Chennai manufacturing plant about 8,000 jobs will be created indirectly through suppliers and dealers.

In the last fiscal year Ford sold 42,000 cars and by expanding their Chennai based manufacturing plant they expects annual production in India to increase 2,00,000 cars, by 2010.