Ford India to Expand Engine Capacity, Introduce 8 New Models

MUMBAI – Ford aims to boost worldwide sales by 50% by 2015 and one of the keys to its strategy is India, both as a production hub and a growing market.

The U.S. auto maker is moving to double its total investment in India by Rs50 billion ($1.1 billion) and is introducing eight new models over the next four years here.

Ford India’s Figo compact celebrates 100,000-unit sales.

Michael Boneham, president and managing director, says the investment underscores the importance of Ford India’s Chennai plant and the auto maker’s ongoing expansion. This will result in more fuel-efficient engines and technologically advanced vehicles in India and around the world.

The Society of Indian Automobile Manufacturers data shows sales and exports of Ford India’s five models soared to 127,613 units in the last fiscal year ending in March, up 124.8% from the prior year.

The company is forming an aggressive strategy to boost global sales from 5.3 million to 8 million vehicles a year by the middle of this decade. Sales in the Asia-Pacific-Africa division, spurred by pushing farther into India and China, are to comprise one-third of the total.

Ford India expects to produce 600,000 engines annually by 2016. Plant capacity, aided by a flexible production line on which a diesel or gasoline engine can be made, already has been raised to 330,000 units a year. Plans are to expand it by another 270,000 units by running three shifts.

Joe Hinrichs, president of Ford's Asia/Pacific and Africa markets, says that, besides increasing its presence in India, the auto maker intends to make the country a production center for its compact vehicles. He cites plans to export the Figo to 50 new markets, including Mexico, South Africa and North African countries.

The auto maker recently celebrated the sale of its 100,000th Figo small hatchback, after just 15 months in the market. It’s the featured attraction in a 100-day road show with stops in 1,000 towns and cities nationwide.

The Figo is based on the previous-generation European Fiesta and uses the same platform, but is specially designed and built for Indian roads and traffic.

The Figo’s 1.2L Duratec gasoline engine provides 36.5 mpg (15.5 L/100 km), while its 1.4L Duratorq diesel engine gets 43.5 mpg (18.5 L/100 km). The car’s shared platform makes it affordable; the price ranges between Rs306,000-Rs549,000 ($ 6,800-$12,200).

Ford India also has begun production of its all-new Fiesta sedan, expected to go on sale before year’s end. It will offer both a 1.5L gasoline engine producing 40 mpg (17 L/100km) and Duratorq diesel with fuel efficiency of 55.3 mpg (23.5 L/100 km).

The new investment will boost the auto maker’s vehicle-production capacity here from 200,000 units to 440,000 by 2016.

Ford is developing an Eco-Boost line of engines soon to be available in all its small cars sold globally. The Dunton Technical Centre in the U.K. has produced a 1.0L 3-cyl. turbo direct-injection engine with twin independent variable camshaft timing. The auto maker claims its performance will match that of a 1.6L 4-cyl. engine.

So far, this engine has not been fitted into any car, but the auto maker says it will be available in the Figo and forthcoming small cars in India.