Ford India has confirmed fresh investments in its manufacturing base in Chennai, Tamil Nadu, reports the Press Trust of India. In addition, Ford will set up a new engineering and technology centre in the state, says the report, citing Ford Asia-Pacific president Dave Schoch. The new centre will host Ford's operations in the fields of information technology (IT), product engineering, finance and accounting, and data analytics, among others. The automaker signed a memorandum of understanding with the state government without disclosing the size of the investment or the capacity expansion it is planning to achieve. "This is the next chapter of our India journey. With these latest investments, we are making rapid progress in our vision of driving innovation from India to the world," said Schoch.
Significance: Ford's Chennai plant is capable of producing 200,000 vehicles and 340,000 engines per annum. The automaker also opened its second manufacturing plant in India earlier this year in Gujarat, with a production capacity of 240,000 units per annum. Although the US automaker's sales in India are only a fraction of its output capacity, Ford has identified exports as a key ingredient of its investment plans in India. With the recent launch of the Figo Aspire compact sedan and the upcoming Figo hatchback, Ford will be close to having a competitive portfolio for the local market.
