Ford and Volkwagen targeting North India to set up new plants

The US motor company, Ford and the leading German automobile manufacturer, Volkswagen are focusing their interest to set up their new facilities in North India in order to capture major share in the fastest growing automobile hub. As per the sources from Ministry of Heavy Industries, Ford is spotting for a perfect location which could manufacture 2 lac units per annum and would take the decision regarding the matter by this year. One of the officials stated that Ford is planning to increase its production range in the India market and would also like to export the manufactured units. Ford is looking ahead to set up its facility in one the major automobile markets in India, probably near Manesar-Gurgaon region in NCR. At present Ford India has got its manufacturing facility in Chennai which accounts for 2 lakhs unit production annually. Ford has started 2 shifts for its production range due the remarkable success of Ford Figo. Mr. Michael Boneham, President and Managing Director, Ford India stated that they are planning to bring in 8 new products in India by 2015 and are also looking to export products from India. He added that presently they are operating 2 shifts at the Chennai facility due to high demands and said that they also have the options to increase it to 3 shifts. One of the the government officials stated that the German automobile player, Volkswagen is also initiating to establish a new plant in North India to meet its long term strategies to capture 10% share in the domestic market. Volkswagen will also increase the production scale at its Chakan facility near Pune which currently has production capacity to produce 1.1 lakh units annually. However, one the Volkswagen officials commented that they have not yet finalized with the things. Presently they are evaluating the cost structure and the new models to be launched in India. He added that things under discussion at present, but they would require one more plant to meet their targeted market share.

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