Ford goes beyond Make in India, will Design in India

New Delhi: Global automobile companies Mercedes and BMW have been gung-ho on the government’s ‘Make in India’ initiative. Now, American carmaker Ford is giving Indian automobile manufacturing a new dimension — its India subsidiary is considering designing a new vehicle in the country.

The move will make Ford the first global automobile major to design a vehicle here. Typically, global carmakers with a manufacturing base in India collaborate with their global research teams.

Ford, it is learnt, will design the new Fiesta (to replace the existing one) at its research and development and engineering facilities in Chennai. The product, which will cater to the domestic and export markets, is expected to be launched in 2017.

When asked about the plans, Ford India President Nigel Harris said, “I can’t confirm or deny it. We are not talking about it. We will tell you all about it next year.”

Last month, the company had said it would enhance investment in India for capacity expansion at the Chennai plant and the establishment of a new global engineering and technology centre. “India is at the centre of innovation at Ford and we are delighted to strengthen our presence with a new global engineering and technology centre,” Dave Schoch, president of Ford Asia-Pacific, had said. “With these latest investments, we are making rapid progress in our vision of driving innovation from India to the world.”

Besides the engineering and technology centre, the new Ford campus will also host operations of Ford Global Business Services in the areas of IT, product engineering, data analytics and manufacturing, among others.

“This reflects the level of confidence global automakers have in Indian capabilities. Until now, India was known for manufacturing excellence and low-cost sourcing. A move by global automakers such as Ford to use India as their design centre will certainly enhance the nation’s ranking in global automobile manufacturing,” said Amit Kaushik, country head (India) at JATO Dynamics, a UK-based automotive research firm.

With two manufacturing facilities in India, Sanand and Chennai, Ford is already showcasing Indian automobile manufacturing at a global scale by exporting about 60 per cent of the vehicles produced.

Vehicles and engines made at these plants are exported to 45 countries, and the list continues to expand.

The company shipped 81,703 passenger vehicles in FY15. In the first five months of this financial year, the company has exported 41,667 vehicles, 28 per cent more than in the year-ago period.

FORD’S PLAN FOR INDIA

• Ford will design the new Fiesta (to replace the existing one), a sedan at its R&D and engineering facilities in Chennai
• Ford will enhance investments in India for capacity expansion at the Chennai Plant and the establishment of a new global engineering and technology centre
• The new Ford campus will host operations of Ford Global Business Services in areas of IT, product engineering, data analytics, manufacturing among others
• Ford shipped 81,703 passenger vehicles last financial year and was the country’s fourth largest exporter
• In the current financial year, the company exported 41,667 vehicles, growing 28 per cent over same period last year

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.