Ford will invest over $1 billion in new factories located in northwest India, to better capture its growing market.
The plants will build around 250,000 cars aimed at two sectors Ford lags in sales, the Asian and African markets—including India itself, where car sales grew 29% in the last year, with 2.5 million cars. Ford only claims 3% of the car market there: compare this to Brazil, where Ford enjoys a 10% hold on new car sales.
Ford will build two factories by 2014 that will employ 5,000 people and be able to build 240,000 cars and 270,000 engines. The northwest state of Gujarat was chosen for Ford’s investment because of its pro-business regulations as well as easy access to international ports. Further south in India, Ford already has a facility that also employs 5,000 people in manufacturing and another 5,000 in office work.
[Source: New York Times]