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Ford goes beyond Make in India, will Design in India

October 09, 2015 02:00 IST

The move will make it the first global automobile major to design a vehicle here

Global auto giants like Mercedes and BMW have been gung-ho on Make in India for some time now. But a new dimension to Indian automobile manufacturing is being given by the American car maker Ford. The company's India subsidiary is looking to design a new vehicle in the country.

The move will make it the first global automobile major to design a vehicle here. Usually, global car makers with a manufacturing base in India collaborate with their global research teams who design products.

Ford, it is learnt, will design the new Fiesta (to replace the existing one), a sedan at its R&D and engineering facilities in Chennai. The product, which will cater to the domestic as well as the export market, is expected to be launched in 2017. When asked about these 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 that next year."

Last month, Ford said it will enhance investments in India for future capacity expansion at the Ford 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 center," Dave Schoch, president of Ford Asia Pacific said last month. "With these latest investments, we are making rapid progress in our vision of driving innovation from India to the world."

Besides the establishment of a 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.

"This reflects the level of confidence that global automakers have in Indian capabilities. Until now, India was known for manufacturing excellence and low cost sourcing. A move by global automakers like 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 its two manufacturing facilities in India - Sanand and Chennai - Ford is already showcasing Indian automobile
manufacturing at a global scale by exporting over 60 per cent of the vehicles produced. Vehicles and engines made at these two plants are exported to 45 countries and the list continues to expand.

Ford shipped 81,703 passenger vehicles last financial year and was the country's fourth largest exporter. In the first five months of the current financial year, the company exported 41,667 vehicles, growing 28 per cent over same period last year.

Ajay Modi in New Delhi
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