Ford India Announces Rs.4000 Crores Plant in Gujarat


Ford India has officially signed an agreement with the Government of Gujarat, to set-up manufacturing facility and an engine plant in Sanand, Gujarat. With 7 new models to hit the road in the next 4 years, Ford has decided to hike its capacity significantly. The manufacturing operation will be built on a 460-acre site, with adjacent land protected by the local government in order to attract and locate automotive suppliers within close proximity of both plants.

As per the agreement, Ford will develop a car assembly and engine plant there with an investment of 1 billion US dollars (about 4000 Crore Indian Rupees) which will create about 5000 jobs in the region. The initial capacity of the new plant which will start working in 2014 will be 2,40,000 cars per year and 2,70,000 engine units per year. The new plant will include stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing.

“Namaste Gujarat! We are delighted to announce that Ford’s newest vehicle manufacturing site will be here in Gujarat. Ford has very aggressive expansion plans in India and in Asia Pacific and Africa, and these two new plants will be important in realizing our growth strategy here in one of the most dynamic regions in the world,” Joe Hinrichs, president and CEO, Ford Asia Pacific and Africa, said.

Mr. Narendra Modi stated in his address, “Entry of Ford Motor Company in the State will further strengthen the capability of Gujarat as an auto hub.” He emphasized, true to the spirit of Gujarat, “I further assure Ford the wholehearted support and hand-holding of my government for the speedy implementation of the project.”

This additional investment brings Ford’s total investment in India to approximately US$2 billion.  Ford recently announced an investment of US$72 million by 2012 to expand its powertrain facility in Chennai to further support its expansion in India. Ford India has also recently increased its sales and service network to 190 outlets across 108 cities, of which more than 40 percent are located in secondary markets.

Also see – Ford India has finalised Gujarat for 2nd manufacturing plant