American automaker Ford is close to inaugurating its second factory in India. Situated at Sanand, Gujarat, Ford India’s second factory will go on stream next year and will begin churning out mass market cars such as the next generation 2015 Figo hatchback and compact sedan. The factory will initially have a capacity to produce 240,000 cars each year, and 270,000 engines. The 1.5 liter Ti-VCT petrol and the 1.5 liter TDCI turbo diesel engines could be the major motors rolling out of Ford India’s engine manufacturing factory at Sanand. The automaker has invested nearly a billion dollars in its Sanand factory.
Even though Ford’s India operations have been racking up losses (Last year saw Ford India close its books with a 597 crore rupee loss), the automaker’s bullishness on India’s long term growth story has seen it continuously invest in the country. Ford currently has an accumulated loss of about 2,360 crore rupees from its Indian operations, a figure that the automaker plans to bring into the black with a focus on exports and a slew of new product launches in India, which are likely to bring in the big volumes. Ford’s Sanand factory will be a key player in the automaker’s path to profitability.
The Sanand factory will see the replacement of the Figo hatchback roll out in early 2015. The Figo, until recently, was Ford India’s best selling car, a position that has been taken over by the EcoSport. With the arrival of the next generation model, Ford will be hoping that the Figo begins gaining volumes like before. The automaker will also enter the sub-4 meter compact sedan space with the 2015 Figo based compact sedan. The compact sedan will replace the Ford Classic in India. Both cars will be sold with petrol and turbo diesel engine options.