NEW DELHI: Ford Motor plans to ship Indian-built engines to Europe and other markets, a company executive said on Thursday, as the firm tries to boost exports in order to use its expanding Indian production capacity.
The company has invested more than $2 billion to build factories in the country, but it has not so far won major market share from competitors such as Hyundai Motor Co and Maruti Suzuki India, which dominate the small car segment.
It would be the first time the firm has shipped Indian-built engines to Europe. Ford will have the capacity to build 450,000 cars and 600,000 engines in India by 2015.
“From an engine perspective, we’ll be exporting not just to Europe but also to Thailand,” said Gary Johnson, vice-president, manufacturing, Asia Pacific and Africa. He did not provide more details.
“If somewhere needs more engines and we’ve got the capability, then we’re going to ship them,” Johnson told Reuters in an interview at a automotive conference in New Delhi.
Ford India currently exports 40 per cent of its engine production and 25 per cent of its car production to 35 countries.
“Europe has got significant manufacturing capacity itself,” said Michael Boneham, President of Ford India.