"This is as part of our efforts to integrate our manufacturing lines for both Escort and Ikon. Besides, Mahindra needed the Nashik plant for some use and we decided to hand it back to them," Spender said.

The process of shifting the production lines has already begun and commercial production of the Escort from the new facility would commence by the month-end. "Trial production has already begun," Spender said.

The company is also working aggressively towards introducing its next offering for the Indian roads - Ikon - by November this year. The pricing and positioning of the car would be finalised shortly, he said.

Meanwhile, faced with abysmally low salesfigures, Ford India has dropped plans to locally produce powertrains for the Escort. However, the company intends to locally manufacture the engines and transmissions of the Ikon."With such low volumes of Escort, it is not viable produce the engines and transmissions for the car here. But we expect Ikon sales to reach the required level within 18 months for commence local production of engines,'' Phil Spender said.

In the first year of production, Ford India intends to produce close to 25,000 units of the car, which would be launched in a three-box design. Trial production is slated to commence in July this year.

Ford India seems to pinning all hopes on the Ikon as it expects to become cash positive within a few months of the lunch of the car. But, break-even on investments would be a few years down the line.

According to Spender, "Becoming cash positive will be our first financial milestone and then we will move forward."

Ford India, a subsidiary of Ford Motor Company of the US, is also projectingto commence exports of the Ikon from India within 18 months of starting production. Latin America has been finalised as one of the export destinations for the car, which would sport both petrol and diesel engines.

Ford also intends to make India the accounting hub for all its global operations.