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Ford to Expand in India, Planning a Small Car and an Engine Plant

Ford Motor plans to more than double its investment in India to produce a small car for the fast-growing local market and to build an engine manufacturing plant there.

The company is expected to announce on Tuesday that it will increase spending in India by $500 million, raising its total investment to $875 million, as it focuses on making the country a regional hub for small-car manufacturing.

Car sales in India are growing by more than 20 percent a year, compared with 3 percent globally, and first-time buyers there are eager for cheap compact cars.

Several local and international automakers have recently announced plans to make a small car specifically for India, inspired in part by Tata Motors’ impending introduction of a $2,500 car.

Posted by Peter C. T. Elsworth  at 1:22 PM to Ford | Permalink

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