Ford Motor Company announced on Tuesday its plans to invest US$500 million (Rs 2,000 crore) to expand its India operations in India. The new investment will fund several new initiatives, including expansion of Ford India’s current manufacturing facility in Chennai to begin production of a new small car within next two years, and construction of fully integrated and flexible engine manufacturing plant that will go online by 2010.

With the new investment, Ford’s total financial commitment in India will touch US$875 million (Rs 3,100 crore).
Asia Pacific & Africa Executive Vice President John Parker said, “This new investment highlights significance of India’s role in our continued expansion and overall strategy for Asia Pacific and Africa region. We’ve developed a long-term and strategic plan for India that’s anchored on a substantial product program and new engine manufacturing facility.”

The investment plan includes a new, engine manufacturing facility to be constructed adjacent to current vehicle plant, for manufacturing both petrol engines and Ford’s next generation diesel engine.