Ford to launch new small car in India

Auto major Ford planning to launch new small car in Indian market in the first quarter of 2010. Ford India plans to storm the small car market in India and it is currently busy in testing of around 300 prototype models of the new small car for the Indian road. The company official said that the new small car will share the platform of its European and Australian siblings and it should have 85 percent localization to reduce its overall manufacturing cost. Sharing the platform and localization of parts should help Ford India to reduce the manufacturing cost and place the new small car competitively in Indian auto market that is one of the most price sensitive markets in the world.

Ford India has designed the new small car especially for the middle class Indian customers to suit the Indian driving conditions and the Indian roads and to offers higher fuel efficiency. Ford India plans to launch the new small car with both petrol and diesel engine option that are - 1.2L petrol engine to get the excise duty cut and probably 1.5L diesel engine.

Ford India has sustained the credit crisis in the US auto market and Ford India has already invested around USD 900 million in India. This investment includes around USD 500 million for the the new engine plant and for the new small car project as well as ramping up of its older vehicle assembling capacity from 0.1 million units to 0.2 million units. Ford India has also recently signed an MoU with the Tamil Nadu state government that will see fresh investments of USD 400 million in the auto market. The new manufacturing plant will have a manufacturing capacity of manufacturing 100,000 units per year. This new manufacturing plant will also be able to manufacture 250,000 engines each year.