India has turned out to be the safest production hub for global car manufacturers, especially US car makers, to tide over the economic downturn. The latest in line is Ford Motors, which is understandably in the final stages of paper work to give nod to a Rs 2000-crore investment plan in Tamil Nadu.
The company is reportedly preparing to sign a memorandum of understanding (MoU) with the state government to set up a new plant. The cabinet has cleared the proposal, according to sources.
The company has already announced its plan to inject $500 million to expand its operations in India. The new investment takes the company's total financial commitment in the country to more than $875 million.
The new fund flow will give great impetus to the company's small car project, which they consider as the entry point to the mass segment.
Ford Motors, which made inroads into India through the launch of its Ford Escort model in 1988, has an integrated manufacturing plant at Maraimalai Nagar which is 45 kms from Chennai. The proposed plant which would double its current capacity by one lakh cars will be set up in the existing 350-acre campus.