Expansion plans in India are well on track, Ford

US auto maker Ford Motor confirmed that its $500-mn capacity expansion plans for India and launch of small car are "well on track" despite the slowdown in the market. "We are committed to our investment plans which have been announced for India and there is no slowdown in this regard (in present circumstances)," Ford India Private Ltd Executive Director Nigel E Wark said.

The company this year had announced to invest $500 mn for expanding the assembling capacity of cars from
1 lakh units to 2 lakh units and set up an engine manufacturing facility for 2.5 lakh units by 2010 in Chennai. With regard to launch of proposed small car for Indian market, he said the company is also committed to bring out small car by 2010.



He acknowledged that the industry had witnessed reduction in demand for cars in view of several factors including credit crunch and the major impact was visible in Tier I cities. "Because of these factors, the demand for cars in Tier 1 cities has been hit hard," he added.