Ford India commences the construction of its new plant in Gujarat

The construction of the new plant will commence shortly and the plant will be fully operational by 2014. The manufacturing plant will be built on 460 acres and the site is adjacent to Tata’s Nano plant.

That construction of the new Ford plant is motion at Sanand, Gujarat, literally a stone’s throw away from the manufacturing plant of the Tata Nano.

Ford India was earlier in talks with the Andhra Pradesh and Tamil Nadu for this second plant. But eventually opted Gujarat because of its favorable business environment, excellent infrastructure, access to ports in northwestern India and skilled workforce

Ford India will invest 1 billion US dollars in their new plant which will roll out 2,40,000 cars and 2,70,000 engine units per year by 2014. The company plans to employ 5000 workers at this site. The new plant will include stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing.

The prime reason of the second plant is because the company has set aggressive growth plans in Africa, Asia Pacific and India to which these two plants will cater. The company will roll out new small cars from this plant to cater to these specific markets. The new cars will be based on ‘One Ford’ strategy taking needs of customers from different markets.

On the occasion, Mr Kumar Galhotra, Vice president, Ford Asia Pacific said,

"This plant is a part of a brand new future for Ford India. The industry is growing rapidly. Within a few years, I see India becoming the 3rd largest market in the world."

With the establishment of the second plant, Ford India will complete its 2 billion dollar investment in India.

It marks Ford India’s entry into the second phase and they need the gods to shower them with blessings if they are to catch up with Hyundai and Tata Motors.