Hyundai and Suzuki have already made India as its export hub for small cars. Following the suit, Ford now plans to make India as its export hub for engines for small cars. It also aims to enter the small car market in India by the year 2010.
"While our primary focus will remain the domestic market in India, we have plans to export the small car and also the engines that we produce in India to Ford's other markets," said Ford India President-designate Michael Boneham. "Currently we export from Europe and when we achieve that level of localisation, the cost advantage could be in the range of 10-15 per cent," he added.
It does not plan to launch a competitor to Tata Nano but it would be a small car like other Maruti models and several hatch backs in the same segment that offer value for money.
Although the export markets are not finalized as yet, however, Ford intends to cater to the Asia Pacific region from India. Ford had already announced a 500 million dollar expansion plans for India. It intends to increase its manufacturing capacity to 2 lakh units from current capacity of 60,000 units. It would also set up a Greenfield small car plant in India.
