Ford India has broken ground for its new integrated manufacturing facility in Sanand, Gujarat.

The automaker is spending US$1bn on the factory which will create 5,000 jobs and initially produce 240,000 vehicles and 270,000 engines a year with the first off line in 2014.

Earlier this year, Ford announced a $72m spend by 2012 to expand its existing powertrain factory in Maraimalai Nagar, Tamil Nadu, about 45km from Chennai. Investment in India to date is about $2bn.

Last year Ford announced that it will bring eight new vehicles to India by mid-decade, beginning with the current Fiesta, launched locally in July.

Ford plans to increase its dealer network to 200 outlets by end of the year, of which over 40% are located in secondary markets. This year it has opened one service or sales outlet every week.