Bloomberg News

Ford Said to Plan Second 5,000-Employee Vehicle Plant in India

July 27, 2011

July 27 (Bloomberg) -- Ford Motor Co., the second-largest U.S. automaker, will invest almost $1 billion to build its second plant in India, in the state of Gujarat, said a person briefed on the matter.

The plant will employ 5,000 people and begin making cars in 2014, said the person, who asked not to be identified before the plans are announced. The Dearborn, Michigan-based automaker employs about 5,000 at its plant near Chennai in the southern Indian state of Tamil Nadu.

Ford sold 95,395 passenger cars in India in the year ended March 31, 2011, giving it a 4.8 percent market share, according to data from the Society of Indian Automobile Manufacturers. Earlier this month, the company introduced a new variant of its Fiesta sedan, the first of eight new models the company intends to introduce in the country by 2015.

The company in an e-mail declined to comment on plans in Gujarat.

“Ford continues to pursue an aggressive growth strategy in India to bring world class vehicles,” the company said in the e-mailed reply to questions. “As part of its plan to introduce eight new products by the middle of the decade Ford is significantly expanding its capacities in its existing facility in Tamil Nadu as well as exploring other options to meet the growing demand of consumers in India and export markets across the world.”

The Press Trust of India reported on the plans yesterday citing senior government officials from the Gujarat state government.

--Editors: Jamie Butters, Bill Koenig

To contact the reporter on this story: Siddharth Philip in Mumbai at

To contact the editor responsible for this story: Jamie Butters at

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