Bangalore, Jun 25: Auto major Ford India will invest USD 500 million for product development and capacity building during the next two years, Company President and Managing Director Michael Boneham said today.
Speaking to reporters after unveiling the all new Fiesta here, he said the investment would see increase in production of cars to 200,000 per year by 2010 from the present 100,000 units. He said the investment was also aimed at increasing engine manufacturing to 250,000 at its Chennai plant both for export and Indian market.
"There is tremendous opportunity for automobile industry in India and we want to encash on it by enhancing engine manufacturing from the present 60,000 to 2.5 lakh by 2010. This was also meant for export to countries in Africa as well as the Indian market," he said.
Mr Boneham said that Ford would roll out Small Cars by 2010.
Research and Development wing with 20 Indian engineers were already at work. "Multinational vision has been put into developing the Small Cars," he said.
Declining to reveal any more details on the Small car, he said that the release of small car was not in competition for Tata's Nano." He said the price of the small car depended on government levies, including customs duty and other taxes.
Ford India Executive Director (Sales and Marketing) Nigel Wark, who was also present, said that company was concentrating on expanding dealership in tier II and III cities.
The company at present had 80 dealers spread across 64 cities of India.