Ford reportedly is planning to set up a second Indian plant and has approached the Gujarat government for land.
According to Economic Times of India sources, Ford which has announced eight new models for India by 2015, has been offered a site near Sanand, where Tata Motors has its Nano factory, by Gujarat state government officials.
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“Representatives from financial organisations that represent Ford have visited senior Gujarat government officials, though nothing has been finalised as yet,” a source said.
Ford would be the third major auto company to enter Gujarat after General Motors and Tata. Sources said the company was keen to begin the project soon. “They have indicated huge investment plans and if everything goes well, they could be coming in within two to three months to finalise things.”
Ford said: “We have announced aggressive growth plans with our eight new products. We have nothing else to say or add at this time.” Its Chennai factory has a peak capacity of around 200,000 units.
A source said the company also wants to “de-risk” its business by moving out of the Chennai region, which is facing labour union problems. “It will also get locational advantage by moving out of the southern region. A plant in the west will help the company cater to markets faster and more efficiently.”
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By GlobalDataThe entry of Tata Motors and GM brought component vendors to Gujarat in big numbers, which is a positive factor for Ford, the report noted.
