Ford India has spent US$72m to increase annual diesel engine production at its plant near Chennai to 340,000 units from 250,000.
The investment, which will create 300 additional jobs, will help ease production and supply constraints that Ford suffered last year, managing director Michael Boneham told reporters.
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The EcoSport small SUV – unveiled in concept form at the Delhi show in January – is expected to be rolled out early next year following a further $142m spend, he said.
Based on the Fiesta platform, the EcoSport will also be built in China at Ford’s factory in Chongqing and will go on sale worldwide.
Capacity at the Chennai plant is being increased to 200,000 units; last year the factory produced 127,000 units. The factory exports to over 30 markets; the plan is to increase that to 50 by the end of the year, said Boneham.
Ford is also building a new plant in Sanand, in Gujarat province, which, said Boneham, is “on track.”
Ford is also investing in the local community around the Chennai plant, he said, spending $125,000 to help improve education, access to safe drinking water, sanitation and vocational training for women in seven nearby villages
The initiative, named ‘Operation Goodwill’, will be run in partnership with three non-government organisations.
“Business is not just about making money,” Boneham said.
